Houthis' Blockade Forces Oil Shippers to Avoid Saudi Ports

Tankers entering the Red Sea to load Saudi oil are increasingly signaling Egypt and the Suez Canal as destinations, rather than Saudi ports. This is an effort to avoid being targeted by the Houthis, an Iranian-backed militant group based in Yemen.

The Houthis announced a blockade on Saudi ports in late July and have subsequently attacked vessels linked to the kingdom in the Red Sea. They recently stated that they would widen their scope to strike Saudi ships in the northern Red Sea, where Aramco has diverted more cargoes for safer passage out of the region.

The Houthi's blockade and attacks on Saudi ships have caused concern among oil traders and shippers, who are seeking alternative routes. By signaling Egypt and the Suez Canal as destinations, tankers may be able to avoid being caught in the conflict and ensure safe passage.