Two oil tankers carrying Saudi crude oil were forced to turn back in the Red Sea on Tuesday following threats from Iran-backed Houthi rebels. The vessels, the Xin Long Yang and Rodos, were en route to China and India with a combined 2.7 million barrels of oil.
Maritime data indicates the tankers made a U-turn and are proceeding towards the Suez Canal, avoiding the Bab el-Mandeb Strait near Yemen, where the Houthis are based. This incident marks the first reported oil disruption on the critical Red Sea trade route since the Houthi rebels declared a naval blockade against Saudi Arabia on Monday.
Iran, which has previously blocked traffic through the Strait of Hormuz, is reportedly using its Houthi proxies to exert influence over the Bab el-Mandeb Strait. This strait connects to the Red Sea and the Suez Canal, a vital passage for global shipping.
The Houthis, who control northern Yemen and the Bab el-Mandeb Strait, have escalated their conflict with Saudi Arabia in recent weeks. The rebels ordered the Red Sea trade route closed to vessels bound for Saudi ports, a move that has been supported by Iran. British maritime security company Ambrey advised ships calling at Saudi Arabian ports to reconsider transiting the Red Sea due to high risk.
A closure of the Bab el-Mandeb Strait could significantly impact the global oil supply, potentially reducing it by 7% if successful. The rerouted tankers face weeks added to their journey as they now must sail through the Mediterranean Sea and around Africa to reach their destinations in Asia.
This Red Sea incident coincides with reports from Iran's Islamic Revolutionary Guard Corps (IRGC) stating that two additional oil tankers were attacked in the Strait of Hormuz on Tuesday after being denied permission to cross. The United Kingdom Maritime Trade Operations (UKMTO) reported that one tanker transiting the strait was struck by an "unknown projectile," leading to the evacuation of its crew.
Following these events, oil prices saw an increase, with prices jumping over $90 per barrel on Tuesday morning, nearing a monthly peak. The average price of gasoline in the U.S. has also risen to over $4 per gallon.