HeadlinesBriefing favicon HeadlinesBriefing.com

Oil Tankers Navigate Houthi Attacks to Maintain Saudi Exports

Bloomberg Markets •
×

Oil tankers continue traversing the Red Sea despite ongoing Houthi rebel attacks, keeping Saudi crude exports flowing to global markets. While missile and drone strikes have slowed maritime traffic, they have not halted shipments entirely, as vessels adopt evasive routing and enhanced security measures.

The Yemeni rebels, aligned with Iran, have targeted commercial shipping since late 2023 in solidarity with Palestinians in Gaza. Major shipping lines initially diverted around the Cape of Good Hope, adding weeks to voyages and increasing freight costs. However, tankers carrying Saudi oil have increasingly returned to the shorter Red Sea route, escorted by international naval coalitions.

Analysts estimate that 70-80% of normal Red Sea oil throughput has been restored, though insurance premiums remain elevated. Saudi Arabia, the world's largest crude exporter, relies on the Bab el-Mandeb strait for roughly 6-7 million barrels per day of exports. The kingdom has coordinated with U.S. and European forces to protect its tankers while avoiding direct military escalation.