Saudi crude tankers turn back in the Red Sea after Houthi threats, disrupting a key export route and adding to pressure on oil markets.
Two tankers loaded with Saudi crude reversed course on Tuesday after threats from Yemen’s Iran-aligned Houthis, according to Reuters. The vessels had been heading to Asia from Yanbu, a Saudi Red Sea port. However, they made U-turns and moved toward the Suez Canal instead of sailing through the Bab el Mandeb into the Indian Ocean.
The Houthis announced a naval blockade on Saudi Arabia on Monday. In a letter to shippers, the group said it would attack vessels loading or discharging Saudi oil. British maritime risk group Vanguard said the tanker reversals were the first confirmed changes in commercial tanker routes after the blockade warning.
Saudi Crude Tankers Turn Back After Threats
Vanguard said the shift was likely to deepen disruption to Saudi crude exports and alter shipping patterns across the region. Meanwhile, the Red Sea had become the main alternate route for Saudi oil after the war shut the Strait of Hormuz. That route carried millions of barrels a day diverted by pipeline through Yanbu.
As a result, Saudi Arabia now faces fewer options to keep crude moving to major buyers in Asia. The source article said the blockade threat hit the Red Sea route directly. It also said confirmed tanker reversals marked a move from verbal threats to physical disruption.
Oil Prices Rise as Risks Grow
Oil prices climbed more than 2% on Tuesday, according to the source article. Brent crude traded above $91 a barrel, while U.S. gasoline moved back above $4 a gallon. Markets reacted to the risk that both major Gulf chokepoints could stay under pressure for a longer period.
The source article also said higher gasoline prices showed the conflict’s inflation spillover was reaching consumers. In addition, it said freight rates and insurance costs could face more upside risk even before any further escalation.
You can access our other news on natural gas markets and global market developments here.
Source: InvestingLive
