Saudi Oil Shipments Rerouted Through Egypt Amid Houthi Threats

Oil shipments from Saudi Arabia are being rerouted through Egypt's Suez Canal due to increased threats from Houthi forces in Yemen. The Houthi threat has led to attacks on Saudi tankers in the Red Sea, prompting operators to divert vessels to avoid the Bab el-Mandeb Strait.

At least eight very large crude carriers (VLCCs) are currently en route to Egypt's Sidi Kerir port, where they will pick up Saudi crude and potentially continue on to Asia. The switch to this longer route has resulted in a multi-month low in tanker traffic through the Bab el-Mandeb Strait.

No tankers were observed at the Saudi port of Yanbu as of early Tuesday, likely due to vessels shutting off transponders to avoid detection by Houthi forces.