Red Sea Risks and Saudi Oil Routes

Since early September 2026 the Houthi fighters have advanced down Yemen’s Red Sea coast and seized islands and port towns near the Bab al-Mandeb Strait. These moves have put a key shipping choke point under Houthi control and have raised the risk for vessels that transit the southern Red Sea. While the group has sometimes said other commercial shipping is safe, many ship operators and masters have altered routes or paused voyages because of attacks and threats in the area.

Saudi Arabia has closed its East‑West pipeline after nearby attacks, and crude flows that had been routed to Red Sea ports—roughly five million barrels per day—were affected. Maritime authorities have issued advisories that vessels linked to Israel, the United States or the United Kingdom face elevated danger in the southern Red Sea and Bab al-Mandeb. Insurance markets and war‑risk underwriters have re‑priced cover and some owners now consider longer routes that add time and cost to voyages. The American Maritime Administration and independent analysts have said port operations at Yanbu and Mocha have been disrupted. Therefore, global energy flows and shipping schedules have been strained, and freight rates and war risk premiums may rise further.