27JUL

Seven ships veer clear of the strait

1 min read

09:24UTC

Seven vessels have diverted away from the Bab al-Mandab since the tanker strikes, according to ship-tracking data, closing the southern reroute in practice.

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EconomicDeveloping

Key takeaway

With ships avoiding both straits, Gulf-to-Europe crude faces the long route round the Cape and a wider insurance exclusion.

Seven vessels have diverted away from the Bab al-Mandab since the 22 July tanker strikes, according to ship-tracking data ¹. the strait, the southern passage past Yemen through which Gulf oil reaches the Suez Canal, had absorbed traffic pushed off the Hormuz route as the northern chokepoint tightened.

The diversions turn a single attack into a routing problem for every owner weighing the southern passage. Hormuz weekly transits had already fallen 66% before this ; avoiding the Bab al-Mandab as well leaves the long haul around the Cape of Good Hope as the remaining way from the Gulf to Europe, adding roughly ten days and the fuel bill to match. War-risk underwriters, who have held a Hormuz exclusion for weeks, now have a fresh southern-strait case on which to widen it.

Deep Analysis

In plain English

Ship-tracking data shows seven vessels have chosen to avoid the Bab al-Mandab strait entirely since the tanker strikes began, sailing the long way round Africa instead. It is a small number so far, but it shows some shipping companies have decided the risk of sailing through the strait is no longer worth it, whatever the extra cost of the longer route.

Sources:Al Jazeera·Axios

Mentions:Bab al-Mandeb →Houthis →Cape of Good Hope →Yemen →

First Reported In

Update #160 · Houthis hit Saudi tankers; Brent tops $100

Al Jazeera· 23 Jul 2026

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Causes and effects

Caused by

Houthis fire on the Saudi tanker Encelia

The tanker strikes prompted seven vessels to divert away from the Bab al-Mandab.

Occurred 21 Jul 2026

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This Event

Seven ships veer clear of the strait

Rerouting away from the Bab al-Mandab as well as Hormuz leaves the long haul round the Cape as the remaining option and widens the war-risk exclusion.

Different Perspectives

Slovakia

Slovakia says it dropped its hold-out on the 21st sanctions package only after Ursula von der Leyen personally signed written gas-price and supply guarantees. The Council of the European Union's own 17,238-character release on the package names neither Slovakia nor any guarantee, leaving Bratislava's account unconfirmed by the institutional record.

EU regulator on capacity mechanisms

Brussels is watching Germany's StromVKG first 4.5 GW capacity auction move toward its 8 September bid deadline without a resolved state-aid clearance for the 9 GW 2026 programme's gas-plant subsidies. A negative spark spread this deep on cheap gas strengthens the case for subsidised dispatchable capacity, the same case still awaiting a state-aid ruling.

French power exporters

French day-ahead cleared EUR 41.13/MWh on Sunday 26 July, EUR 43.09 below Germany, on wind more than doubling and a demand trough, not on any nuclear recovery. The desk expects the discount to hold only as long as French wind and weekend demand repeat, not as a durable nuclear-cost advantage.

European gas storage operator

A storage operator stopped bidding for prompt TTF cargoes on 21 July, reading the strike-halt unwind as the start of a fuel-side correction rather than a floor. It expects the gap between prompt and forward gas to keep narrowing as the war premium continues leaving the curve.

German gas-fired power fleet

German gas-fired plants cut output from 4.37 GW to 2.85 GW between 24 and 27 July, even as TTF fell 8 per cent, because below roughly minus EUR 40/MWh the fuel price stopped deciding dispatch. The fleet expects no relief until wind eases or StromVKG's first 4.5 GW auction adds capacity.

French industrial power consumers

France's day-ahead discount to Germany has nearly closed as TTF and EUA rise together on both sides of the border, eroding the arbitrage French industry relied on through the summer. A standing negative spark removes the German demand buffer that kept that spread wide.