Houthi Strikes Disrupt Red Sea Shipping, Send Crude Prices Soaring

Yemen's Houthi rebels have launched attacks on Saudi oil facilities in the Red Sea, disrupting shipping activity and raising concerns over crude supply and freight costs. According to Kpler shipping data, only 11 commodity vessels crossed the Bab el-Mandeb Strait on Sunday, marking the lowest daily traffic recorded in several months.

The Houthi group has sought to block Saudi exports, and the disruption has pushed physical crude oil prices in the Middle East, Europe, and Africa to their highest levels in nearly two months. Among the vessels that transited the Bab el-Mandeb Strait on Sunday, seven were oil tankers, including three VLCCs destined for Saudi Arabia's Yanbu port to load crude oil.

The disruption has also affected vessel traffic through the Strait of Hormuz, with fewer than 10 commodity vessels passing through each day over the weekend. The impact is expected to increase freight rates, insurance premiums, and transit delays for crude oil, refined fuels, LPG, and petrochemical feedstocks.