Saudi oil tankers reroute in Red Sea after Houthi threats

Two oil tankers carrying Saudi crude oil have altered their routes in the Red Sea, a day after Yemen's Houthi rebels warned of a maritime blockade. The vessels, Xinrongyang and Rhodos, were en route to China and India respectively but turned back from the southern Red Sea, according to ship-tracking data cited by Cyprus Mail.

The rerouting occurred amid heightened tensions between the United States and Iran. The Xinrongyang, a very large crude carrier (VLCC), had departed Saudi Arabia's western Yanbu port with 2 million barrels of crude destined for China. Similarly, the Rhodos, an Aframax-class tanker carrying approximately 700,000 barrels for India, also reversed its course.

A third tanker, the VLCC New Prime, which was scheduled to arrive at Yanbu port this week to load crude, changed its route near Oman before entering the Red Sea. These navigational changes are being interpreted as the first tangible impact of the Houthi's blockade threat on commercial shipping.

The Houthi rebels declared an immediate maritime blockade against Saudi Arabia, warning shipping companies that vessels loading or unloading at Saudi ports could become targets within their operational range. The group claimed this measure took effect on July 20. While the Houthis did not specify the blockade's methods, the Associated Press reported that their actions are aimed at disrupting passage through the Bab el-Mandeb strait.

Analysts suggest that such disruptions could jeopardize the transport of approximately 2.5 million barrels of Saudi crude oil daily. Saudi Arabia utilizes the 1,201 km East-West pipeline, connecting its eastern Abqaiq facilities to the Yanbu port on the Red Sea, to transport up to 7 million barrels of crude daily. This pipeline serves as a crucial alternative export route, bypassing the Strait of Hormuz, which is often subject to Iranian influence.