Oil tankers forced to turn back, take lounger route after Iran proxy threatens another critical choke point

Two oil tankers carrying Saudi crude in the Red Sea — bound for China and India — were forced to turn around on Tuesday following warnings from the Iran-backed Houthi rebels.The Xin Long ​Yang and Rodos oil tankers, loaded with a combined 2.7 million barrels of oil, made a U-turn and headed to the Suez Canal, maritime data shows — avoiding the Bab el-Mandeb Strait near Yemen, where the Houthis are based.The incident marks the first oil disruption incident in the critical Red Sea trade route after the terror group declared a naval blockade against Saudi Arabia on Monday.Iran has blocked traffic to and from the Persian Gulf via the Strait of Hormuz.It’s now trying to employ its Houthi proxies to stifle access to the Bab el-Mandeb Strait, which connects to the Red Sea and the Suez Canal.The Houthis currently control northern Yemen and the critical Bab el-Mandeb Strait, which Saudi Arabia has been using to export millions of barrels of oil a day after Iran shut down the Strait of Hormuz.A closure of the strait would see the Saudis unable to readily export oil from the region and threatens to reduce the world’s oil supply by 7% if successful. Taking the longer route could add weeks to the journey to Indian and China — both major exporters of oil from Arab nations.

The Houthis, who have been in conflict with Yemen’s Saudi-backed government for years, had escalated its conflict with the kingdom last week and ordered the Red Sea trade route closed for Riyadh, a move hailed by Iran.“Vessels calling at Saudi Arabian ports are advised to reconsider transiting the Red Sea and to consider implementing enhanced mitigation measures,” British maritime security company Ambrey advised, adding that it assessed vessels calling at Saudi Arabian ports “were at high risk”.The rebel group has previously proved it was able to threaten ships along the waterway in November 2023 when it attacked Israeli-linked ships over the war in Gaza.War risk insurance costs have...