Yemen’s Houthis, supported by Iran, announced on Monday, July 20, 2026, the imposition of a maritime blockade against Saudi Arabia, significantly increasing tensions in the Red Sea region. This measure was described by the Yemeni militia as an “eye for an eye” retaliation. Already a very large Chinese crude oil carrier has turned back in the southern Red Sea after warnings from Yemen’s Houthi rebels that they would target ships heading to or from Saudi ports. The ship was carrying 2 million barrels of crude oil.
The first ship to give up going through Bab el Mandeb
The VLCC Xin Long Yang left Yanbu Port on Monday, carrying about 2 million barrels of Saudi crude oil to China. It stopped before reaching the border with Yemen on Tuesday morning and was last seen heading north, it said Bloomberg.
The diversion underscores how the Houthi rebel movement threatens Saudi oil exports from the central Red Sea, which has become a crucial solution since the Iran war has severely disrupted shipping from the country’s Persian Gulf ports.
The ship could make the much longer journey to China via the Suez Canal and the west coast of Africa, but would have to unload about half its cargo in the Sumed pipeline that runs through Egypt from the Red Sea to the Mediterranean coast before it could cross the canal. They would then reload at Sidi Kerir before continuing their journey. But this would increase the length of its journey from about 7,000 miles to more than 17,000 miles.
Its original route to China would have passed through the Bab el Mandeb Strait, a narrow passage of water connecting the Red Sea to the Gulf of Aden and the Arabian Sea.
The strategic importance of the Bab el-Mandeb Strait
The Bab el-Mandeb Strait, at the southern end of the Red Sea, is a crucial strategic point for global oil transport.
Shutting down this route would cut global oil supplies by 7% and block most Saudi exports, according to Reuters. This situation would further worsen the already damaged flow of oil from the Persian Gulf, which has fallen by 10% since the start of the conflict.
“If the strait is effectively blocked, the impact on the global economy will be significant and oil prices will rise rapidly,” said Richard Bronze of Energy Aspects.
Reactions from the Houthis and Saudi Arabia
Houthi spokesman Yahya Saree explained in a televised address that the blockade was a response to “Saudi Arabia’s ongoing siege on Yemen”. Saree also warned that any Saudi retaliation would be met with “total and harsh escalation.”
Saudi Arabia, which transports 70% of its energy exports through the Red Sea, now faces the risk of major disruptions, it says The Hill. This situation could worsen the energy crisis previously triggered by tensions between the US and Iran.
Bab el-Mandeb, alternative route for Strait of Hormuz – already blocked
The Bab el-Mandeb Strait has become a critical alternative route for shipments unable to cross the Strait of Hormuz, recently blocked by Iran following the resumption of hostilities with the US. Reuters reported that Iran has asked the Houthis to cut off access through the Red Sea in the event of US attacks on its energy infrastructure.
Shipping insurance costs skyrocketed after the Houthi announcement. Industry sources told Reuters that insurance premiums rose to 0.75 percent of a ship’s value, compared with 0.3 percent on Friday. This means additional costs of hundreds of thousands of dollars for each seven-day trip.
“If a complete closure of the strait is reached, Asian refiners will experience delays of up to a month in receiving Saudi oil,” estimated Matt Smith, director of commodity research at Kpler.
The global recession is upon us
The Houthi blockade could force oil vessels to sail longer routes, bypassing Africa, which will increase logistics costs and reduce delivery capacity. “This situation could lead to a global recession,” warned John Paisie, president of Stratas Advisors.
The price of oil has already seen a slight increase, trading at around $89 a barrel on Monday, according to Reuters. Analysts estimate that in the event of a complete shutdown, prices could once again exceed the threshold of $115-120 per barrel.
The Houthi message to the international community
The Houthis have warned the US and its Gulf allies against escalating the conflict, stressing the need for a diplomatic solution. In an official statement, they called for an end to aggression against Muslim countries and the lifting of the “unjust siege on Yemen”.
Since 2023, the Houthis have launched more than 100 attacks on merchant ships in the Red Sea, according to the US Maritime Administration. The current standoff could further escalate tensions in the region and destabilize global markets.
Source: Libertatea
