Houthi rebels strike two Saudi oil tankers in Red Sea, Brent crude nears $96 as Bab el-Mandeb blockade escalates regional crisis
Yemen's Houthi rebels say they hit two Saudi tankers with missiles and drones in the Red Sea, triggering a fire and forcing ships to reroute. Brent crude rose 2.6% to nearly $96 a barrel, while the US carried out a 12th night of airstrikes on Iran.
Attack on Saudi tankers
On 23 July, Yemen's Houthi rebels said they struck two Saudi oil tankers, the Encelia and Layla, with missiles and drones in the Red Sea. The UK Maritime Trade Operations (UKMTO) confirmed that a vessel 70 nautical miles southwest of Al-Shuqaiq was hit by a projectile, causing a fire on the bow. All crew members were brought to safety, and no casualties or environmental damage were reported. One tanker later reported being adrift. The Houthis claimed the ships had violated a maritime blockade they announced on 21 July. According to Bloomberg, this is the first time oil tankers in the Red Sea have been directly targeted, opening a second risk zone for global oil supply alongside the Strait of Hormuz.
Blockade and shipping disruption
The Houthi blockade targets all ships carrying Saudi cargo through the Bab el-Mandeb strait, a narrow chokepoint between Yemen and the Horn of Africa. Nearly 9 million barrels of oil pass through the strait daily, and analysts estimate almost 4 million barrels are difficult to reroute. Since the announcement, at least eight vessels with Saudi links have altered course. On 22 July, the Chinese car carrier Liu Jiang Kou turned back in the Gulf of Aden, and three tankers that had loaded Saudi crude in Jeddah began a detour toward the Suez Canal, a route that adds an estimated $2 million in extra costs per ship via the Cape of Good Hope. The Dutch shipping company Marwave confirmed its tanker Lia reversed course because crew safety could not be guaranteed. The EU naval mission Aspides warned Israeli, American, and Saudi ships to avoid the area. The Houthi military spokesman said on Yemeni state television that the blockade was a response to Saudi Arabia's "unjust and oppressive siege of our beloved people for nearly twelve years." The blockade follows a Saudi-backed bombing of Sanaa airport last week, which the Houthis say violated a four-year-old agreement. The Houthis had fired rockets at a Saudi airport in retaliation.
- Houthis announce maritime blockade of Saudi-linked ships via Bab el-Mandeb.
- Multiple ships turn around; Chinese car carrier Liu Jiang Kou reverses course.
- EU Navfor Aspides warns Israeli, US, and Saudi ships to avoid the area.
- Houthis strike two Saudi tankers with missiles and drones; fire breaks out on one vessel.
- Brent crude rises 2.6% to nearly $96 per barrel, a six-week high.
Oil and gas prices jump
Brent crude rose 2.6% in early Thursday trading to nearly $96 per barrel, its highest level in six weeks. The Dutch advisory price for Euro95 petrol climbed to €2.62 per liter, approaching the record of €2.646 set in early May. European natural gas prices reached €63 per megawatt-hour, roughly 50% higher than a month ago. Goldman Sachs analyst Daan Struyven warned that Brent could exceed $120 per barrel if the disruption persists. Insurers are charging higher premiums, and some shipowners are anchoring their vessels.
This is a serious escalation. If this route is disrupted for a prolonged period, the tightness in the oil market will only increase further.
- Brent crude
- 2.6 %
- Natural gas
- 50 %
US strikes Iran for 12th night
Separately, the United States carried out a 12th consecutive night of airstrikes on Iranian military infrastructure. Centcom said the order came directly from President Donald Trump. Iranian security officials told the SNN news agency that two people were killed in a strike on the Shalamcheh border crossing with Iraq. Kuwait reported that its air defenses shot down drones, likely launched from Iran in retaliation for the US attacks. The US military said the strikes aim to reduce Iranian attacks on "innocent civilians and commercial shipping in the region."
A second chokepoint under threat
The Bab el-Mandeb blockade compounds the existing closure of the Strait of Hormuz, which Iran has blocked. Saudi Arabia had been using the East-West pipeline to export 4–5 million barrels per day via the Red Sea port of Yanbu, about 5% of global demand. With both straits now threatened, the kingdom's oil exports face severe constraints. Some ships are still transiting Bab el-Mandeb; at least three tankers with Saudi connections crossed or approached the strait on 22 July, according to maritime analytics firm Windward. However, many vessels have switched off their AIS transmitters, making the full picture unclear. The Iranian Revolutionary Guard claimed that three tankers had attempted to take a route where sea mines are laid.
