By Florence Tan and Nidhi VermaWednesday July 22, 2026
An aerial view of the coast of the Red Sea is seen through the window of an airplane, near Sharm el-Sheikh, Egypt, February 6, 2025. REUTERS/Amr Abdallah Dalsh/File Photo Purchase Licensing Rights
Three tankers carrying Saudi crude bound for China and India reversed course in the Red Sea on Tuesday, turning towards the Suez Canal instead of risking passage near Yemen’s coast after a warning from the Iran-aligned Houthi militia.
The movements of the Xin Long Yang, Rodos and Amazon point to a possible second disruption along a vital maritime energy corridor, potentially deepening supply strains already triggered by the closure of the Strait of Hormuz.
The Houthis announced a naval blockade of Saudi Arabia on Monday, potentially opening a new front in the U.S.-Israeli war with Iran and widening risks to global oil supplies and trade beyond the Gulf.
In an email to shipping companies, the group warned against loading or unloading cargo at Saudi ports, saying vessels involved could be targeted “in any location”.
The Houthis hold northern Yemen, including the coastline along the Bab el-Mandeb, the narrow strait at the southern entrance to the Red Sea. With the Strait of Hormuz — the Gulf’s main outlet — blocked during the war, Saudi Arabia’s Red Sea terminal at Yanbu has emerged as the principal alternative for Middle Eastern oil exports, handling millions of barrels a day.
Insurance sources said war-risk premiums had climbed over the previous 24 hours as underwriters reassessed the risks associated with Saudi ports.
“Vessels calling at Saudi Arabian ports are advised to reconsider transiting the Red Sea and to consider implementing enhanced mitigation measures,” British maritime security company Ambrey said, adding that it assessed vessels calling at Saudi Arabian ports “were at high risk”.
U-TURNS AT SEA
The Xin Long Yang, a Very Large Crude Carrier that finished loading 2 million barrels of Saudi crude at Yanbu on Monday, had initially been bound for China via the Red Sea exit. Shipping data showed it turned around and was sailing towards Suez instead.
Rodos, a smaller tanker carrying about 700,000 barrels of Saudi crude for India, also turned back towards Suez on Tuesday, the data showed. Amazon, a Suezmax tanker that loaded crude for India on Tuesday, likewise set course for Suez. All three tankers switched off their transponders on Tuesday.
Dynacom Tankers Management, manager of Rodos and Amazon, and Cosco Shipping, which manages Xin Long Yang, did not immediately respond to requests for comment.
New Prime, another VLCC due to reach Yanbu later this week to load crude, also reversed course off Oman before entering the Red Sea. Its manager, Associated Maritime Co HK, did not respond to a request for comment.
Three shipping sources said Yanbu continued loading oil onto vessels already inside the Red Sea or approaching through Suez. Tracking data showed Olympic Luck, a tanker that entered the Red Sea through Suez, was still proceeding towards Yanbu, along with several vessels nearby. Still, most tankers operating in the Red Sea or loading at Yanbu have turned off their transponders since Tuesday.
Routing tankers through the Suez Canal rather than out of the Red Sea via Bab el-Mandeb would extend voyages to Asian buyers by weeks, forcing ships through the Mediterranean and around Africa.
“While an actual blockade seems unlikely given the resources required for such an undertaking, a step-up in hostilities could see Houthis targeting Saudi-associated ships transiting the Bab el-Mandeb strait,” ship broker Clarksons said in a note on Tuesday.
In recent months, an average of 10 crude tankers a day have passed through the Bab el-Mandeb.
“However, should Houthis affect traffic through the region, we could see a reshuffling of crude cargoes in which Yanbu volumes are increasingly directed towards Europe.”
Fully laden VLCCs using the canal must first discharge part of their cargo, which can bypass the canal by being pumped through the SUMED pipeline to the Mediterranean.
Reporting by Florence Tan in Singapore, Nidhi Verma in New Delhi, and Jonathan Saul and Ahmad Ghaddar; Editing by Peter Graff and Kate Mayberry
