HUNDREDS OF TANKERS ARE STUCK WAITING FOR HOUTHI APPROVAL AS THE BLOCKADE BITES

HUNDREDS OF TANKERS ARE STUCK WAITING FOR HOUTHI APPROVAL AS THE BLOCKADE BITES

Hundreds of oil tankers and commercial vessels are reportedly waiting for safe passage approval from Yemen’s Houthis. The group declared a maritime ban on Saudi-linked shipping on July 20, based on a “blockade for blockade” principle in response to Saudi restrictions on Houthi-controlled Yemeni areas.

The blockade is working. Saudi seaborne crude exports through Bab al-Mandab have fallen by roughly half, from about 3 million barrels per day to around 1.5 million. The group claims to have struck eight Saudi tankers since the ban began and forced 29 to turn back or change course.

China has held direct talks with the Houthis to secure safe passage for its tankers, reportedly clearing vessels individually with the group. At least four tankers have loaded Saudi crude and transited the strait since the blockade was imposed.

Saudi Arabia is scrambling. The kingdom has diverted its oil tankers northward through the Red Sea after the group tightened restrictions around Bab al-Mandab in the south. But the Houthis have vowed to escalate attacks on Saudi tankers in the northern Red Sea to “close all outlets”.

Saudi Arabia has formed a 14-nation maritime alliance to protect shipping, but it is unclear if the coalition can guarantee passage. The Houthis have made exceptions for countries like China and Russia, while blocking Saudi-linked vessels.

How long can the Saudis absorb the economic pain? And what will happen to global energy markets if the strait remains blocked for months?