Saudi Workaround for Exporting Oil from Red Sea

 CNBC published on 12 August 2026 an article titled "Saudi Arabia Ramps Up Oil Exports Through Mediterranean Pipeline to Avoid Attacks in Red Sea" by Spencer Kimball and Deena Zaidi.

Following the Iranian-supported Houthi blockade of Saudi ships passing through the south end of the Red Sea, Riyadh is rerouting oil supertankers north through the Suez Canal even for oil destined for Asia.

The problem is that fully loaded supertankers sit too deep in the water to transit the Suez Canal.  Consequently, they pump half the Saudi oil cargo into a pipeline on Egypt's Red Sea coast that conveys it across Egypt to an outlet in the Mediterranean Sea.  The supertankers then transit the Suez Canal half loaded and reload the oil at the other end of the pipeline in the Mediterranean.  Saudi oil exports departing the south end of the Red Sea are down 90 percent.

Because of the Houthi blockade, a higher percentage of Saudi oil is now going north to Europe rather than south to Asia.  This may result in a boon for West African oil by making transport to Asia more competitive than oil originating in Saudi Arabia. 

Saudi Arabia's Red Sea Maritime Alliance

 Firstpost posted on 15 August 2026 an article titled "What Is Saudi Arabia's New Red Sea Maritime Alliance?"

Saudi Arabia hosted 43 nations in Riyadh in late July and launched the Multinational Maritime Defense Coalition that, so far, unites 14 regional countries to protect the Red Sea, Bab el-Mandeb Strait, and Gulf of Aden.  It aims to counter Houthi threats coming from Yemen, secure global trade routes, and reduce reliance on Western maritime security operations.

Countries that have signed on are Saudi Arabia, Bahrain, Qatar, Kuwait, Jordan, Egypt, Djibouti, Somalia, Sudan, Comoros, Pakistan, Bangladesh, Turkey, and the internationally recognized government in Yemen.  Notable omissions are Eritrea, India, UAE, and Oman.  

An Analysis of the Houthi Red Sea Blockade

 Chatham House published on 24 July 2026 an analysis titled "The Houthi Red Sea Blockade: Will Collective Maritime Security Be Defended or Break Down?" by Nitya Labh and Farea Al-Muslimi.

The rebel Houthis are part of Iran's "Axis of Resistance" but retain significant autonomy.  The Houthi blockade of Saudi ships in the Red Sea acts as a deterrent against regional adversaries and reinforces their legitimacy in Yemen.

The Houthi objective is not to sink large numbers of ships, but to create enough uncertainty for commercial shipping that insurers raise premiums, companies reroute vessels, and governments absorb mounting economic costs.

Houthi Attack on Ship in Red Sea Kills Six

 The New York Times published on 11 August 2026 an article titled "Six Killed in Houth Strikes on Red Sea Ship, Yemeni Government Says" by Ismaeel Naar.  

Both the government of Yemen and Iran-backed Houthi rebels stated that Houthi missiles hit a ship in the Bab el-Mandeb Strait on 11 August.  They disagree on what the ship was carrying.  The Yemeni government says food supplies and the Houthis say Saudi military equipment.  There are conflicting accounts of the ship's ownership.  

Ethiopia: Review of Fighting in Western Tigray

 AEIs Critical Threats Africa File posted on 6 August 2026 an article titled "Tigray on the Precipice" by Michael DeAngelo and Liam Karr.

The Tigray People's Liberation Front and the Ethiopian National Defense Forces engaged in western Tigray on 1 August, each accusing the other of initiating the conflict.  The battle ended quickly but tension remains high in the region.  

Saudi Arabia Creates Red Sea Task Force

 AEIs Critical Threats Africa File posted on 6 August 2026 an article titled "Red Sea" by Michael DeAngelo and Liam Karr.

Saudi Arabia announced on 30 July the formation of a Multinational Maritime Defense Alliance to protect shipping in the Red Sea and adjacent waterways following the Bab el-Mandeb Strait blockade of Saudi ships by the Houthi rebels in Yemen.  So far, 14 nations have joined the task force.  

Red Sea Security and US Policy

 The Congressional Research Service published on 21 July 2026 a brief titled "Yemen: Conflict, Red Sea Security, and U.S. Policy" by Christopher M. Blanchard.

In March 2025, the Trump administration designated the Iranian-backed Houthis a Foreign Terrorist Organization.  On March 15, 2025, U.S. forces began a military campaign against the Houthis which the administration said was intended to compel them to end attacks on international shipping in the Red Sea.  The United States and the Houthis agreed to a truce in May 2025, which continues to hold.  

Background of Houthis' Red Sea Blockade

 Pakistan's South Asian Chronicle published on 1 August 2026 an article titled "Houthi Red Sea Crisis."

This is a nice summary of the background of the Houthi blockade of the Red Sea and relations with Saudi Arabia.  

Houthi Red Sea Attacks Cause Higher Insurance Rates

 Insurance Journal posted on 30 July 2026 an article titled "Houthis' Red Sea Attacks Prompt London Insurers to Widen High-Risk Zone" by Jonathan Saul.

As a result of Iran-backed Houthi attacks on international shipping in the Red Sea, London insurers have expanded the area in the Red Sea subject to higher rates.  Even small changes to war insurance add hundreds of thousands of dollars in extra costs for a seven-day voyage.  

China Has Arranged Red Sea Safe Passage with Houthis

 Al-Monitor published on 29 July 2026 an article titled "China in Touch with Yemen's Houthis to Allow Ships to Sail Through Red Sea, Sources Say" by Jonathan Saul, Parisa Hafezi, Timour Azhari, and Chen Aizhu.  

Beijing has asked the Iranian-backed Houthi rebels in Yemen to promise safe passage for its oil tankers transporting crude from Saudi Arabia's Yanbu terminal in the Red Sea south through the Bab el-Mandeb choke point.  China clears each shipment with the Houthis, who have developed good relations with Beijing.

Houthis Claim to Attack Another Saudi Oil Tanker

 The New York Times published on 28 July 2026 an article titled "Houthis Claim Strike on Another Saudi Oil Tanker" by Pranav Baskar and Shipin Hakim.  

Iranian-backed Houthi rebels in Yemen said they targeted on 28 July a Saudi oil tanker, the NCC Ghazal, in the Red Sea with missiles.  Saudi authorities did not confirm the attack.

Securing the Red Sea

 The Hollings Center for International Dialogue published in July 2026 a brief titled "Securing Strategic Waters Across the MENA Region: The Red Sea."

The current threat in the Red Sea is not confined to the closure of the geographical Bab el-Mandeb choke point.  It is shaped by persistent uncertainty caused by the security crises in the wider region.

The threat cannot be addressed through conventional naval tools alone, nor reduced to a piracy or law enforcement problem.  The brief recommends incremental cooperation, capacity building, and risk mitigation measures.

Two Chinese-operated Supertankers Negotiate Houthi Blockade

 Marine Radar posted on 24 July 2026 an article titled "Two Chinese Supertankers Exit Red Sea Despite Houthi Blockade."

Two Chinese-operated supertankers chartered by COSCO transported Saudi oil safely through the south end of the Red Sea in spite of the Houthi blockade.  They carried about 4 million gallons of Saudi crude for destinations in China.  The Houthis have not targeted Chinese-operated tankers.  

Impact of Houthi Blockade in Red Sea

 AEIs Critical Threats posted on 23 July 2026 an analysis titled "Houthi Blockade in the Red Sea" by Michael DeAngelo, Liam Karr, and Alexsandar Wiebler.

The Iranian-backed Houthi blockade of the south end of the Red Sea has already disrupted shipping in the Red Sea, causing increased costs and transit delays.  The Houthi blockade will further increase fuel shortages, negatively impact African countries that rely on Saudi fuel shipments, and strain the global economy.  

Houthis Claim to Have Attacked Two Saudi Oil Tankers in Red Sea

 The Hill published on 23 July 2026 an article titled "Houthis Say 2 Saudi Oil Tankers Attacked in Red Sea" by Max Rego.

Iran-backed Houthi rebels in Yemen say they struck two Saudi oil tankers, named Encelia and Layla, using ballistic and cruise missiles in the Red Sea earlier this week. So far, they have forced at least 10 other ships to turn around rather than pass through the Bab el-Mandeb choke point.  

Yemen's Houthis Reportedly Ready to Attack Shipping in Southern Red Sea

 CNBC posted on 22 July 2026 an article titled "Houthis Deploy Missiles and Drones to Attack Ships in Southern Red Sea, Naval Group Says" by Spencer Kimball.

Iran-backed Houthi rebels in Yemen have completed preparations to attack shipping, including the deployment of missiles and drones positioned near the Bab el-Mandeb choke point at the south end of the Red Sea. 

The European Union's naval mission in the Middle East warned commercial ships linked to Saudi Arabia, Israel, and the United States to avoid transiting the Red Sea or Gulf of Aden.

Oil Tankers Avoiding South End of Red Sea Following Houthi Threats

 The Indian Express published on 22 July 2026 an article titled "India-bound Oil Tanker Takes U-turn in Red Sea after Houthi Threat."

Two oil tankers headed south for India and one for China toward the Bab el-Mandeb choke point from the Saudi oil terminal of Yanbu in the Red Sea turned around and headed north through the Suez Canal following threats from the Iran-backed Houthis in Yemen.

The tankers must now transit the Mediterranean Sea, sail around Africa, and pass the Cape of Good Hope before reaching India or China, adding significantly to shipping costs.  These are the first Saudi oil laden tankers to respond to the Houthi threat. 

Another oil tanker scheduled to load Saudi crude at Yanbu by entering the Red Sea through the Bab el-Mandeb choke point turned back off the coast of Oman.     

Houthi Threat to the Red Sea

 The Council on Foreign Relations published on 20 July 2026 a background piece titled "Another Hormuz? What to Know About the Houthi Threat to the Red Sea" by Diana Roy.

The Yemen-based and Iranian-backed Houthis' decision to impose a naval blockade on Saudi Arabia opens a new front in the U.S.-Iran war and threatens to choke off the Red Sea's 20-mile-wide Bab el-Mandeb Strait, with potentially major consequences for the global economy.

Iran War Moves to Houthis and Red Sea

 Al-Monitor published on 20 July 2026 an article titled "As Houthis Declare Red Sea Blockade on Saudi Arabia, Oil Markets Brace for Impact" by Jack Dutton.  

Yemen's Iran-backed Houthi rebels said on 20 July that it was imposing a naval blockade on Saudi Arabia, as the regional war widens to threaten another key route for global oil supplies following disruption in the Strait of Hormuz.  Because of the problems in the Strait of Hormuz, Saudi Arabia has redirected much of its crude exports by pipeline through its Red Sea terminal at Yanbu.  

Ships sailing north of Yanbu for Europe through the Suez Canal will not be impacted by this Houthi action.  Those headed south for Asia through the Bab el-Mandeb choke point will be impacted and the Saudis may put at risk a large percentage of current crude exports.  If the Houthis successfully prevent the Saudis from passing through Bab el-Mandeb, global supplies could fall by as much as 7 percent.  

Will the Houthis Shut Down the Red Sea/Suez Canal Waterway?

 Reuters published on 14 July 2026 an article titled "After Hormuz, Iran Turns to Red Sea Gateway as New Pressure Point" by Samia Nakhoul.

Depending on US and Saudi actions related to the Strait of Hormuz, Iran may ask its Houthi allies in Yemen to shut down the Bab el-Mandeb choke point, which controls international shipping through the Red Sea and Suez Canal.