Yemen Houthis Attack Two Saudi Oil Tankers in Red Sea

Yemen's Iran-backed Houthi rebels attacked two Saudi oil tankers in the Red Sea on Thursday, opening a new front in the regional conflict by imposing a naval blockade on Saudi-linked shipping through the Bab el-Mandeb Strait. The escalation in the Yemen conflict compounds disruptions from the near-halt in trade through the Strait of Hormuz, where US strikes on Iran and Iranian counterattacks have sharply reduced tanker traffic and Iranian oil exports.

Houthi Attacks on Saudi Tankers

Yemen's Iran-backed Houthi rebels say they attacked two Saudi oil tankers in the Red Sea on Thursday, marking their first reported strike on a vessel since announcing a blockade of Saudi-linked shipping through the Bab el-Mandeb Strait earlier this week. [2] The Houthis say the move is retaliation for Saudi Arabia’s blockade on Yemen and a recent strike on Sanaa’s international airport. [2] The Houthi militia attacked two Saudi Arabian oil tankers in a military operation, the group said on Thursday, with the Saudi Arabian state news agency, SPA, later confirming that one of the two vessels was ablaze after an assault while sailing in the Red Sea. [3] The group identified the tankers as Encelia and Laylan, both carrying Saudi oil. [5] Encelia sent a distress call off Jizan port, with its bow catching fire. [5] The Houthis claimed the strikes using drones and missiles. [5] SPA did not name the attacker. [3]

Blockade of the Bab el-Mandeb Strait

The Houthis announced they would impose a naval blockade on shipments from Saudi Arabia after stating they would impose a naval blockade on Saudi-linked shipping through the Bab el-Mandeb Strait. [3] The group warned vessels to stay away from Saudi ports. [1] The threat could disrupt navigation through the Bab el-Mandeb Strait, a narrow passage linking the Red Sea to the Indian Ocean. [1] At least 10 ships turned back as a result. [1] The strait carries about five percent of global oil and gas shipments. [5] In 2024, 4.1 billion barrels of crude oil passed through it. [5] Shipping companies rerouted vessels toward the Bab el-Mandeb Strait when traffic through the Strait of Hormuz became riskier. [5] The Bab el-Mandeb Strait is the world’s second-most important sea route and a corridor toward the Indian Ocean and Asia. [5] Closure of both chokepoints would force ships to sail around the southern tip of Africa. [5]

Houthi rebels attack two Saudi oil tankers in the Red Sea amid escalating Gulf tensions. — Source: france24

Link to US-Iran Conflict and Hormuz Disruptions

The escalation adds further pressure to global shipping as the Strait of Hormuz remains closed. [2] US Central Command conducted air strikes on targets in Iran for 13 consecutive nights, aimed at weakening Iranian military capabilities that threaten civilian shipping and commercial vessels in the Strait of Hormuz. [1] Iran responded by attacking Arab states hosting US military bases, with Bahrain, Kuwait, and Jordan targeted by Iranian drones and ballistic missiles throughout July 2026. [1] Iranian strikes on vessels crossing the strait caused a drop in non-Iranian oil tankers traversing the waterway. [3] A US naval blockade targeting Iranian ports likely reduced Iranian oil loadings to zero from 1.5 million to 2 million barrels per day at the start of the month. [3] Loading activity within the Gulf fell to 2.5 million barrels per day over the past seven days, compared with 6 million barrels per day over the past 30 days. [3] Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to follow a mined route in the southern area of the strait near the coast of Oman and that two others had turned back. [3] The Guards said the strait was under their control and completely closed while US actions continued. [3]

Oil Market and Global Supply Impacts

Oil prices settled above $100 on Thursday for the first time since May after Yemen's Houthis said they attacked two Saudi oil tankers in the Red Sea. [3] Brent futures finished up $6.62, or 7 percent, at $100.69 a barrel, marking their highest close since May 22. [3] The global crude oil benchmark's price is now nearly 40 percent higher than when the war in Iran began in February. [3] US West Texas Intermediate crude closed up $5.36, or 6.2 percent, to settle at $92.19 a barrel, the highest close since June 4. [3] Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of roughly a quarter of the world's oil supply. [3] Following the attacks, two Chinese supertankers carrying a combined 4 million barrels of Saudi Arabian oil managed to exit the Red Sea via the Bab el-Mandeb Strait on Thursday. [3] Saudi Arabia continues limited exports via its East-West Pipeline to Yanbu on the Red Sea coast. [1] Goldman Sachs said Brent might exceed $120 a barrel in the fourth quarter and average $100 next year if the strait remains disrupted through 2027. [3] Seven core OPEC+ members are likely to increase their output target by about 188,000 barrels per day for September when they meet on August 2. [3]

Houthi rebels attack two Saudi oil tankers in the Red Sea. — Source: jerusalempost

UN Response and Truce Concerns

The UN Special Envoy expressed alarm over the resumption of Houthi attacks on commercial shipping and renewed disruption of maritime navigation in the Red Sea. [4] The envoy has engaged intensively with Yemeni, regional and international stakeholders over the past weeks. [4] The priority remains to preserve the gains of the 2022 truce, prevent a return to wider conflict, and avoid escalation in the Yemen conflict. [4]

Background on Houthi Role in Yemen

The Houthis are an armed, political and religious movement operating in Yemen that wages guerrilla warfare against the Yemeni government in northern Yemen. [5] Yemen is effectively divided because of the dispute. [5] The Houthis are Shia Muslims like the majority of Iranians. [5] Saudi Arabia supports the government in Sanaa, while Iran counts the group, founded in the 1990s, as part of the so-called axis of resistance. [5] The warring parties in Yemen agreed to a truce in 2022 that has largely held. [5] Last week the Houthi rebels became more strongly involved in the Iran-US war. [5] The Yemeni government struck Sanaa airport to prevent an Iranian plane from landing there. [5] The Houthis hold Saudi Arabia responsible for the strike and threaten retaliation. [5]

What to watch next: Seven core OPEC+ members may raise output targets when they meet on August 2, while two Chinese supertankers already exited the Red Sea and Saudi Arabia maintains limited exports via its East-West Pipeline.