Saudi oil tankers bound for China and India make U-turn after Houthi threat in Red Sea

Two oil tankers carrying Saudi crude to China and India reversed course in the Red Sea on Tuesday, 21 July, after Yemen's Houthi rebels declared a naval blockade against Saudi Arabia and warned they would target ships sailing to or from Saudi ports, raising fresh concerns over global energy supplies and maritime trade.

According to Reuters, citing LSEG shipping data, the two tankers made U-turns and headed north toward the Suez route following the Houthi warning. The development comes as the Iran-backed Houthi group expands its campaign beyond the Strait of Hormuz, opening a potential new front in the escalating regional conflict involving the United States and Iran.

Saudi crude tanker carrying 2 million barrels turns back

One of the vessels, the very large crude carrier (VLCC) Xin Long Yang, departed the Saudi Red Sea port of Yanbu on Monday carrying about 2 million barrels of crude oil bound for China.

Bloomberg reported that the tanker halted before reaching the Yemeni border on Tuesday morning before reversing course and heading north, instead of continuing through the Bab el-Mandeb Strait.

The ship's diversion highlights growing security risks for Saudi Arabia's Red Sea oil export route, which has become increasingly important after the Iran conflict severely disrupted shipping from the kingdom's Persian Gulf terminals.

Saudi Arabia increasingly relies on its East-West Pipeline to export crude via the Red Sea after shipping through the Strait of Hormuz was disrupted by the Iran conflict.

Houthi blockade threatens Red Sea shipping

The Houthis on Monday (July 20) announced a naval blockade against Saudi Arabia, warning that they would resume attacks on vessels calling at Saudi ports.

The Bab el-Mandeb Strait, which links the Red Sea with the Gulf of Aden and the Arabian Sea, is one of the world's busiest maritime chokepoints and a vital route for crude shipments heading to Asia.

The latest warning raises fears of renewed attacks on commercial shipping and further disruption to global oil flows.

Longer route could more than double journey

If the Xin Long Yang avoids the Bab el-Mandeb, it may have to take a significantly longer route via the Suez Canal and around Africa, as per Bloomberg.

Because a fully loaded VLCC cannot transit the Suez Canal at full draft, the vessel would first need to unload roughly half of its cargo into Egypt's Sumed pipeline, which transports crude from the Red Sea to the Mediterranean. The oil would then be reloaded at the Mediterranean terminal of Sidi Kerir before continuing to China.

The detour would increase the voyage from around 7,000 miles to more than 17,000 miles, substantially raising freight costs and delivery times, Bloomberg stated.

Escalating regional conflict

The Houthi announcement comes amid a sharp escalation in tensions following the collapse of an interim peace agreement between the United States and Iran.

Since the breakdown of the deal, Iran has targeted shipping linked to the Strait of Hormuz and launched attacks on US military bases in neighbouring Gulf countries, while Washington has responded with repeated strikes on Iranian territory.

By threatening shipping in the Red Sea in addition to the Strait of Hormuz, the Houthis have widened the risks facing two of the world's most strategically important maritime trade routes, increasing concerns over oil supplies, shipping costs and broader disruptions to global commerce.

Houthis warn shipping firms against using Saudi ports, threaten vessels worldwide

Yemen's Iran-aligned Houthi militia has warned global shipping companies against loading or unloading cargo at Saudi Arabian ports, saying vessels that violate the directive could be targeted "in any location" within the group's operational reach.

The warning, issued through an email seen by Reuters, marks a significant escalation in the Houthis' campaign against maritime traffic and comes a day after the group declared a naval blockade against Saudi Arabia, raising concerns over global energy supplies and international trade.

Houthis ban shipping activity at Saudi ports

According to the 20 July email, sent to multiple shipping companies by the Houthis' Sanaa-based Humanitarian Operations Coordination Centre (HOCC), vessels are prohibited from conducting cargo operations at any Saudi port.

"Vessels are banned from loading or discharging cargo at or from any Saudi ports," the email stated.

The Houthis urged shipping companies to "exercise due diligence and the utmost care" in their commercial operations, warning that any breach of the directive would carry serious consequences.

The new restrictions took effect at 1201 GMT on 20 July, according to the notice.

Ships could be targeted anywhere

The Houthis warned that vessels ignoring the order could face sanctions and military action beyond the Red Sea.

"Any such activity would expose the violating vessels to sanctions," the email said.

It added that offending ships "may be subject to targeting in any location within the operational reach of the Yemeni Armed Forces," signalling that attacks may not be confined to waters off Yemen.

The warning broadens the threat facing international shipping as the Iran-backed group expands its maritime campaign amid escalating regional tensions.

Red Sea blockade raises oil supply concerns

The Houthi declaration of a naval blockade against Saudi Arabia opens a potential new front in the conflict linked to the ongoing US-Iran war.

A prolonged disruption at the Bab el-Mandeb Strait—the southern gateway to the Red Sea—would threaten one of the world's most important maritime trade routes and remove a critical alternative export corridor for Saudi Arabia, especially as shipping through the Strait of Hormuz remains vulnerable.

The move has heightened concerns over oil supplies, freight costs and broader disruptions to global trade.

US bombs Iran as Tehran strikes Gulf bases

The United States and Iran traded fresh military strikes on Tuesday (July 21), intensifying the regional conflict.

US forces launched airstrikes on military targets across southern and western Iran after President Donald Trump vowed Tehran would "pay dearly" for the deaths of American soldiers. According to US Central Command, the attacks targeted military command centres, missile and drone launch sites, maritime assets and air defence systems. Iranian state media reported strikes near Shiraz, Konarak, Chabahar, Khorramabad and Abdanan.

Iran retaliated with attacks on US-linked targets across the Gulf, claiming strikes on military sites in Bahrain, Kuwait and Jordan. Jordan said it intercepted five Iranian drones, while reports of attacks in Bahrain and Kuwait could not be independently verified.

The conflict also spread to key shipping routes. The UK Maritime Trade Operations (UKMTO) said a tanker in the Strait of Hormuz was struck by an unidentified projectile, forcing its crew to abandon the vessel. Iran's Revolutionary Guards also claimed two oil tankers caught fire while transiting the strait.