Houthi threats disrupt Red Sea trade, forcing supertankers to load Saudi crude oil at Egyptian ports

(1) Due to threats posed by Houthi militants, Red Sea trade has been disrupted. Empty supertankers are currently heading to Sidi Kerir, an Egyptian Mediterranean port, to load Saudi crude oil, while observable vessel traffic at Saudi Arabia’s key Red Sea export hub is decreasing. (2) Ship tracking data shows that at least eight Very Large Crude Carriers have set their destination to Sidi Kerir and plan to arrive in the coming weeks up to mid-August. Previously, Iran-backed Houthi militants attacked a vessel in the Red Sea last week, prompting Saudi Aramco to increase oil supplies via the Egyptian port. (3) Earlier on Tuesday, no tankers were observed docking at Yanbu, the Saudi Red Sea port, though some ships may have turned off their transponders to complete loading while avoiding monitoring.