27JUL

Seven ships veer clear of the strait

1 min read

10:27UTC

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.

← Back to Saudi crude reroutes to Suez, freight bites Jump to analysis ↓

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

Read original →

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

Read story →

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

Asian buyers (India, Japan, China, South Korea)

Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.

Russia / Lukoil

Moscow loses the roughly $14-a-barrel legal headroom the frozen price-cap formula would otherwise have released toward $58, even as Urals trades below Russia's own $59 budget floor. The shadow-fleet insurance workaround the freeze leaves untouched remains the actual route sanctioned crude clears above $44 in practice.

European Union / Council

Brussels adopted its 21st sanctions package on 23 July, letting boarding states confiscate and sell shadow-fleet cargo outright and freezing the G7 price cap's automatic adjustment to mid-2027, converting indefinite tanker storage into recoverable value for enforcers.

Freight and tanker desks

The Baltic Exchange's TD3C VLCC benchmark, most desks' reference for Gulf freight, prices a single-vessel voyage while Saudi shippers now pay for two Suezmax charters at roughly double the transit time. That gap leaves any book hedged purely on TD3C carrying unrecognised Suezmax basis risk on the bulk of Saudi rerouted volume.

Mediterranean refiners (Sines, Trieste, Augusta)

Refiners already facing aframax rates up 198% month-on-month now watch Ain Sokhna draw 23% of Yanbu's rerouted crude through the same SUMED corridor they lean on for product backfill. Fujairah and ARA stocks near record lows leave little room to absorb a thinner Suez product flow.

Saudi Arabia

Riyadh has rerouted its entire western-coast crude book through Yanbu and Suez since the 23 July Bab el-Mandeb embargo, absorbing a roughly $2m-per-voyage Suezmax premium on every diverted cargo. The kingdom's fiscal breakeven near $108 a barrel makes that freight cost, not the blockade itself, the more durable drag on export economics.