Saudi Arabia Halts Some Red Sea Oil as the Blockade Bites
Saudi Arabia has suspended some of its Red Sea oil shipments after Houthi attacks on two of its tankers, with at least five vessels reversing course, deepening the disruption to global energy trade. The Iran-aligned Houthis have declared a blockade of the strategic Bab el-Mandeb strait, opening a second front alongside the throttled Strait of Hormuz. Maritime authorities reported a tanker ablaze some 70 nautical miles off the Saudi coast, its crew unharmed.
The two chokepoints together carry a large share of the world’s seaborne crude, and their simultaneous disruption is the gravest since the war began. War-risk insurance premiums have soared, and refined-fuel markets — diesel and petrol above all — face the sharpest squeeze. The kingdom routes much of its exports through the Red Sea port of Yanbu, now imperilled, forcing Asia-bound cargoes onto longer routes. Goldman Sachs warned crude could reach $120 a barrel by the year’s end if the disruption persists. Watch whether Riyadh seeks naval escorts or Washington moves to reopen the sea lanes by force.