Saudi oil tankers are now steering clear of the Gulf of Aden, a key chokepoint for global crude shipments, after a surge in Houthi attacks on commercial vessels. The rerouting adds days to voyages and pushes up costs for one of the world's biggest oil exporters.
Why the Rerouting?
The Houthi group, which controls large parts of Yemen, has been targeting ships in the Red Sea and Gulf of Aden since late 2023. Their stated aim is to pressure Israel over the war in Gaza, but the strikes have hit vessels with no direct Israeli link. Saudi tankers, many carrying crude for Asian buyers, now face the choice of transiting the danger zone or taking the long way around Africa's Cape of Good Hope.
Shipping data shows a clear shift. Tanker tracking firms report that Saudi-flagged and Saudi-chartered vessels have stopped calling at the Gulf of Aden since early this month. Instead, they're either waiting in the Red Sea or diverting south. The move is voluntary, not ordered by Riyadh, but the threat is real. Houthi missiles and drones have struck several tankers in recent weeks, causing damage but no major spills so far.
Impact on Oil Supply Chains
The detour adds roughly 10 days to a typical voyage from the Persian Gulf to Europe, and about 5 days to Asia-bound trips via the Suez Canal. That means higher fuel bills, more crew time at sea, and tighter availability of tankers. For Saudi Arabia, which exports around 7 million barrels of crude a day, any disruption to shipping lanes can ripple through global oil markets.
Insurance premiums for vessels entering the Gulf of Aden have spiked. Some underwriters now charge war-risk rates that multiply the normal cost. That extra expense gets passed on to buyers, making Saudi crude slightly less competitive compared with supplies from the Atlantic Basin or the US. Still, the kingdom's oil is priced on a formula basis, so the added freight cost is absorbed by the customer.
Broader Regional Context
The Houthi campaign has already forced many container ships and bulk carriers to reroute. But oil tankers were slower to change course, partly because Saudi Arabia has its own security arrangements and because crude shipments are less frequent than container services. That's now changing. The rerouting of Saudi tankers is a sign that even well-protected state-owned fleets are no longer willing to risk the passage.
Other major oil producers, including Iraq and Kuwait, have also diverted some shipments. The net effect is a tightening of tanker supply and a slight increase in global shipping costs. But the oil market has so far shrugged off the disruption, with Brent crude trading in a narrow range. Traders say the real risk is a prolonged closure of the Bab el-Mandeb strait, which could force a permanent shift in trade flows.
The Houthis have shown no sign of backing down. Their attacks have continued even as the US and UK launch airstrikes on Houthi positions in Yemen. For Saudi tankers, the rerouting is likely to persist as long as the threat remains. The question now is whether other state-owned fleets will follow suit, and how long the global shipping industry can absorb the extra costs before they show up in consumer prices.
