Houthi Attacks on Red Sea Ships Trigger Chain Reaction; Reports Say Asian Oil Buyers Discuss Alternative Routes with Saudi Aramco

According to Financial Associated Press APP, several informed traders have revealed that after the Houthi forces attacked oil tankers in the Red Sea, at least two Asian crude oil buyers are discussing with Saudi Aramco whether to change shipping routes to detour around Africa.

Traders stated that refiners are considering alternatives to avoid the critical choke point at the southern end of the Red Sea—the Bab-el-Mandeb Strait. These alternatives may include lifting oil from Egypt’s Mediterranean port of Sidi Kerir instead of Saudi Arabia’s Red Sea hub, Yanbu.

Traders said that if Asian buyers wish to receive crude oil in the Mediterranean region, one option is for Saudi Aramco to first transport crude from Yanbu to Egypt’s Red Sea port, Ain Sukhna, and then send it north via pipeline. Another option is for buyers to take delivery at Yanbu and handle logistics within Egypt themselves.

Traders indicated that negotiations are still ongoing, and no final decisions have been made. Saudi Aramco declined to comment on the matter.

If the shorter route across the Red Sea and Bab-el-Mandeb Strait to Asia is redirected, the journey will instead go through Egypt and around South Africa, making the trip much longer. Traders noted that this could extend shipping times by up to a month.

The Houthi forces in Yemen, backed by Iran, have claimed responsibility for attacking two oil tankers in the Red Sea, sending new shockwaves through the global oil market. The attack further amplifies the risks of energy transportation in the Middle East. The U.S.-Iran conflict has caused millions of barrels of crude to bypass the Strait of Hormuz, while the Red Sea route has remained a crucial alternative corridor.

Traders are beginning to reassess the chain reaction from the Red Sea attacks, sending crude futures prices higher on Thursday. Brent crude exceeded $98 a barrel, up by more than one-third so far this month.

Saudi Arabia typically sells oil to clients west of the Suez Canal via Egypt. Fully loaded Very Large Crude Carriers cannot pass through the Suez Canal, so Saudi Arabia prefers to use smaller vessels or pipelines for transportation.

As of press time, WTI crude oil price has risen 3.81% to $90.14 per barrel; Brent crude oil price has risen 4.41% to $98.22 per barrel.