Houthi Blockade Crimps Saudi Oil Flows, Sends Freight Rates Soaring

The ongoing Houthi naval blockade against Saudi Arabia has resulted in a significant diversion of its crude oil, tightening the global tanker market and driving up freight rates.

According to traders and analysts, approximately 3.9 million barrels per day of crude were loaded at Yanbu on the Red Sea in the second quarter of 2026, more than double the volume from the same period in 2025.

Most shipping operators have deemed southbound Saudi oil movements through the Bab al-Mandab Strait entirely off-limits due to Houthi threats.

Vessels now exit the Red Sea via the Suez Canal and circumnavigate Africa to reach Asian markets, adding over 30 days of sailing time.