Saudi Oil Tankers Take Detour Around Africa Amid Red Sea Disruption

Saudi oil tankers are taking an unusual detour around Africa due to Houthi threats in the Red Sea. Typically, Saudi crude transits the Bab el-Mandeb chokepoint and then continues south through the Suez Canal. However, with increasing risks, six Saudi vessels have diverted from their usual route.

Two empty tankers, Hazm and Dilam, are heading toward Gibraltar, a major Mediterranean refuelling hub, while four other tankers are signalling destinations in South Africa's Durban or Algoa Bay. This rerouting adds substantial time and cost, with a full supertanker unable to transit the Suez Canal due to shallow waters.

Russian oil has followed a similar pattern before, sending a supertanker around Africa to Asia after cargo transfers were disrupted in 2024. The US Energy Information Administration found that Russia shipped nearly four times as much crude and oil products around the Cape of Good Hope in the first five months of 2024 compared with all of 2023.

Analysts caution that alternatives to the Red Sea corridor remain limited, but reduced tanker availability could support freight markets more broadly. If both Hormuz and Bab el-Mandeb remain compromised simultaneously, import costs and crude availability on international markets may be affected.