Houthis' Attack on Saudi Oil Installations Disrupts Red Sea Shipping

The Houthis' attack on Saudi oil installations along the Red Sea coast has led to a significant drop in marine traffic through the Bab el-Mandeb strait. According to Lloyd's List, the number of transits fell from around 350 per week to below 125 by July 20, 2026.

The Houthis targeted the Aramco refinery in Jizan and export facilities at Yanbu on Sunday (July 26, 2026), saying they were responding to Saudi drone incursions into Yemeni airspace. The attack follows a blockade announced by the Houthis on Saudi Arabia from April 20.

Despite US President Donald Trump's statement that the US and Iran would talk again, crude prices fell on Monday (July 27, 2026). However, Reuters reported that seven oil tankers transited the Bab el-Mandeb strait, with three of them entering the Red Sea to load Saudi crude.

China's largest state-owned tanker operators have withdrawn their very large crude carriers from Red Sea trade due to safety concerns. Lloyd's List data shows that China's vessels carrying Saudi crude oil have still transited the Bab-el-Mandeb strait, but at a much lower rate.