Houthi Attack Slows Red Sea Shipping and Global Oil Supply

Yemen's Houthi rebels have disrupted shipping through the Bab el-Mandeb strait after attacking Saudi oil installations along the Red Sea coast. The attack has resulted in a significant slowdown of ship traffic, with only 11 commodity vessels passing through the strait on Sunday, the lowest level in months.

The disruption affects not just Saudi exports but also global oil supply. Seven of the vessels that passed through Bab el-Mandeb were oil tankers, including three very large crude carriers (VLCCs) heading to the port of Yanbu to load Saudi crude. Two of these VLCCs are bound for China, while one is a Russian-linked ship.

In contrast, traffic through the Strait of Hormuz remained low over the weekend, with fewer than 10 commodity vessels passing daily despite the U.S.-Iran conflict having paused strikes in the Middle East. This has raised concerns about the stability of global oil supply chains.