Oil tankers are increasingly steering clear of the southern Red Sea as security fears rise around the Bab el-Mandeb Strait, one of the world’s most important maritime chokepoints. After Yemen’s Iran-backed Houthi rebels warned shipowners against carrying Saudi exports through the passage, vessel movements have slowed, routes have shifted, and oil markets are once again pricing in the risk of disruption across the Middle East.
Oil Tankers Reroute as Red Sea Risks Mount
Ships that would normally pass through the Bab el-Mandeb Strait are now pausing, turning back, or seeking alternative routes. According to vessel-tracking data cited by Bloomberg, some Asia-bound tankers appear to be heading north toward the Suez Canal instead, a diversion that can add significant time and cost to voyages. In some cases, sailing times could be extended by as much as 30 days, depending on destination and routing.
The uncertainty is made harder to read because some ships may be switching off their transponders, a tactic used in high-risk waters to reduce the chance of being targeted. The European Union’s naval force in the Red Sea has advised certain merchant vessels to take precautions, especially those linked to Saudi Arabia and the US. As a result, the absence of visible tanker traffic through Bab el-Mandeb does not necessarily mean no ships are moving, but it does show that owners and charterers are becoming more cautious.
That caution is already feeding into the wider oil market. Brent crude has surged this month, climbing above $95 a barrel as traders react to renewed hostilities in the Gulf, the breakdown of the US-Iran ceasefire, and the growing threat to Red Sea shipping. Analysts at Standard Chartered described the situation as a “two-chokepoint problem,” with risks now concentrated not only around the Strait of Hormuz but also at the southern entrance to the Red Sea.
Houthi Threat Puts Saudi Oil Flows in Doubt
Saudi Arabia has relied heavily on its western Red Sea terminals to keep crude exports moving while tensions threaten flows through the Persian Gulf. In the week before the Houthi warning, Saudi terminals at Yanbu handled record crude volumes, with exports reaching about 5.9 million barrels a day, according to Bloomberg tracking data. That made the Red Sea route a crucial outlet for Saudi barrels headed to global markets.
The Houthi announcement now threatens that workaround. The group has previously attacked merchant vessels in the southern Red Sea, forcing ships to reroute around the region, though the EU says it has not struck a ship since September last year. Still, the warning has been enough to make tanker operators reconsider calls at Saudi Red Sea ports, and several vessels due to load crude at Yanbu have reportedly paused or turned back near the Arabian Sea.
Shipping executives and analysts say the impact could soon be felt in freight rates, insurance costs, and delivery schedules. The Red Sea does offer an alternative path north through the Suez Canal, unlike the more constrained Strait of Hormuz, but that option is expensive and time-consuming for cargoes bound for Asia. If the threat persists, oil buyers may face higher transport costs, tighter supply logistics, and what analysts call an “urgency premium” as companies rush to secure safer routes.
The growing avoidance of the Red Sea shows how quickly geopolitical risk can reshape global energy flows. For Saudi Arabia, the Houthi threat endangers a key export lifeline; for tanker owners, it raises difficult questions about safety, cost, and timing. For the oil market, it adds another layer of pressure at a moment when there are fewer buffers left to absorb a major disruption.
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