Saudi oil tankers bound for India, China reroute after Houthi warning

Two oil tankers carrying Saudi crude for India and China changed course in the Red Sea on Tuesday after Yemen's Iran-aligned Houthi militia warned shipping companies against loading or unloading cargo at Saudi ports, Reuters reported.

The vessels — Xin Long Yang, carrying about 2 million barrels of Saudi crude for China, and Rodos, loaded with around 700,000 barrels for India — turned around and headed towards the Suez Canal instead of continuing towards the Bab el-Mandeb Strait off Yemen's coast, according to shipping data cited in the report

The change in route points to a potential fresh disruption to a key global energy shipping corridor, adding to concerns over oil supplies after the closure of the Strait of Hormuz during the ongoing conflict in the region.


The Houthis on Monday declared a naval blockade against Saudi Arabia and warned shipping companies that loading or discharging cargo at Saudi ports could expose vessels to attack "in any location".

With the Strait of Hormuz blocked, Saudi Arabia's Red Sea port of Yanbu has become the kingdom's main alternative export route, allowing millions of barrels of crude to be shipped each day. Reuters, citing three shipping sources said that Yanbu continued to operate, with vessels already in the Red Sea or arriving through the Suez Canal still loading cargo.

Another very large crude carrier, New Prime, which was due to load crude at Yanbu later this week, also turned back off the coast of Oman before entering the Red Sea.

British maritime security firm Ambrey advised vessels calling at Saudi ports to reconsider transiting the Red Sea and implement enhanced risk mitigation measures, while insurance industry sources told Reuters that war-risk premiums for Saudi ports had risen as risk assessments were being reviewed.

If tankers avoid the Bab el-Mandeb Strait and instead transit through the Suez Canal before sailing around Africa to reach Asia, shipments could take several weeks longer, the report said. Fully laden very large crude carriers (VLCCs) using the Suez Canal are also required to offload part of their cargo, which is transported across Egypt through the SUMED pipeline before being reloaded in the Mediterranean.

Shipbroker Clarksons said a full Houthi blockade appeared unlikely given the resources required but warned that an escalation in hostilities could lead to attacks on Saudi-linked vessels transiting the Bab el-Mandeb Strait. On average, about 10 crude tankers pass through the waterway each day, according to the report.