Houthi blockade slashes Bab el-Mandeb oil tanker traffic by 69%
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Yemen's Houthi group announced a naval blockade against Saudi Arabia on July 21, causing oil tanker traffic through the Bab el-Mandeb Strait to plunge 69% to just 5 vessels on July 21 from 16 the previous day. The move follows a Houthi missile and drone attack on Abha International Airport in retaliation for a Saudi-led coalition airstrike on Sanaa airport. Brent crude traded near $90 per barrel as shipping disruptions and war risk premiums surged.
The Blockade Announcement
The Houthis declared a naval blockade on Saudi Arabia on July 21, vowing 'blockade for blockade' in response to what they said was a Saudi-led coalition airstrike on Sanaa International Airport targeting Houthi leaders returning from a funeral in Iran. The Houthis retaliated by striking Abha International Airport with missiles and drones. The announcement immediately raised risk levels for Bab el-Mandeb transits, according to ING Group senior economist Rico Luman, with freight and insurance premiums already spiking.
Traffic Collapse and Cost Surge
Oil tanker traffic through Bab el-Mandeb fell 69% to 5 vessels on July 21 from 16 the day before, with 9 transits recorded so far on July 22. In the Strait of Hormuz, only 1 crude tanker passed on July 21 after five consecutive days of zero traffic. Luman noted that rerouting around Africa to the Mediterranean would take significantly longer, while increased use of Saudi Arabia's Yanbu port as an alternative export hub adds pressure on oil markets.
What's Next
The UN Security Council is expected to discuss the escalating maritime threats in the coming days. It remains unclear whether the Houthi blockade will expand to other shipping or how Saudi-led coalition forces will respond militarily.
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Houthi blockade slashes Bab el-Mandeb oil tanker traffic by 69%
