Red Sea Crisis: India-Bound Oil Tankers Divert Amid Houthi Blockade

At least seven oil tankers, including two carrying Saudi crude for India, performed sharp U-turns in the Red Sea on Tuesday following a maritime blockade declared by Yemen's Houthi militia. The Iran-aligned group announced a naval embargo against Saudi Arabia in retaliation for alleged attacks on Sana'a International Airport. The tankers Rodos, carrying 700,000 barrels, and Amazon, both managed by Dynacom Tankers Management, altered their course toward the Suez Canal after approaching the Yemeni coast. Another vessel, the Xin Long Yang, carrying 2 million barrels of Saudi crude to China, similarly reversed course.

The Houthi threat specifically targets vessels loading or discharging cargo at Saudi Arabian ports, warning that such ships are within operational reach of their forces. This blockade creates a dual crisis for global energy markets, as the Strait of Hormuz remains largely restricted due to the ongoing US-Israeli war with Iran. Saudi Arabia had previously shifted 70% of its crude exports to the Red Sea port of Yanbu via an east-west pipeline to bypass Hormuz. If the Bab el-Mandeb strait remains contested, this primary alternative route for Middle Eastern oil becomes non-viable, forcing tankers to take the lengthy path around Africa's southern tip.

The diversion of India-bound tankers poses an immediate challenge to New Delhi’s energy security and freight costs. Shipping experts warn that even a short-term closure of this 29-km-wide chokepoint will drive up insurance premiums and consumer energy prices. Approximately 6 million barrels of crude per day passing through the strait to Asia are now at risk. While Saudi Arabia has vowed to protect its ships under international law, the EU's naval force, Aspides, has already recommended that merchant vessels linked to Saudi or Israeli interests avoid the region until the threat level decreases.