Jakarta, CNBC Indonesia \u2013 The Red Sea blockade, a consequence of\ntensions between Saudi Arabia and Yemen\u2019s Houthis, has already claimed\nvictims. Asian oil refining companies have begun seeking alternative\nroutes to transport crude oil from Saudi Red Sea ports through the Suez\nCanal, or even around the African continent.<\/p>\n
This extreme step was taken as a precaution after the Houthi group in\nYemen, allied with Iran, announced a maritime blockade against Saudi\nArabia. The rerouting has become the latest dynamic in global oil trade\nflows, amid the ongoing war between the United States and Iran in the\nGulf.<\/p>\n
\u201cThe situation has pushed refiners to look for alternative supply\nsources and to use different shipping routes,\u201d Reuters reported, quoted\non Wednesday (22\/7\/2026).<\/p>\n
\u201cTwo tankers carrying Saudi crude oil bound for Asia were reported to\nhave turned around in the Red Sea on Tuesday after threats from the\nHouthis emerged. At the same time, the number of ships passing through\nthe Strait of Hormuz also declined again at the start of this week,\u201d the\noutlet added.<\/p>\n
In fact, analysts and industry observers have warned that westbound\nshipments to Egypt from Saudi Arabia\u2019s Yanbu port on the Red Sea must\nnow pass through the Suez Canal and then round the Cape of Good Hope in\nAfrica. This could add up to four weeks of additional travel time.<\/p>\n
This detour is certain to multiply freight costs as well as ship fuel\nconsumption. Under normal circumstances, ships from Yanbu head directly\neast towards the Arabian Sea.<\/p>\n
One such vessel is the Liberia-flagged Rodos, which loaded crude oil\nat Yanbu for delivery to India\u2019s west coast. According to LSEG and Kpler\ndata on Tuesday, the ship was observed turning westward and signalling a\ndestination towards the Suez Canal.<\/p>\n
Meanwhile, it was also reported that the South Korean refining\ncompany Hyundai Oilbank is now searching for a very large crude carrier\n(VLCC) to load oil at Yanbu. Hyundai is considering the use of the Suez\nCanal as well as the SUMED pipeline (Suez-Mediterranean Pipeline), which\nconnects the Red Sea with the Mediterranean Sea in Egypt, to bring the\noil to the Land of the Morning Calm.<\/p>\n
In fact, a fully laden VLCC cannot pass through the Suez Canal due to\nthe waterway\u2019s depth limitations. For this reason, ship operators\nusually transfer part of the oil cargo to the SUMED pipeline on the\nEgyptian Red Sea side before entering the canal. After the ship passes\nthrough the Suez Canal with a lighter load, the oil is reloaded on the\nMediterranean side.<\/p>\n
According to shipping sources, charterers can choose to use a\ncombination of the SUMED pipeline and the Suez Canal depending on their\nneeds, particularly if the Bab el-Mandeb Strait, the southern entrance\nto the Red Sea, is truly blockaded. The calculation of additional costs\nresulting from the route change will be carried out later. The Suez\nCanal and the SUMED pipeline have long been the main routes for oil\nshipments from the Red Sea to Europe.<\/p>\n
\u201cThe change in behaviour by tankers tells us that they are taking the\nthreat seriously,\u201d said Matt Smith, Director of Commodity Research at\nKpler.<\/p>\n
\u201cThis Houthi disruption comes at a very crucial time for Saudi\nArabia. Saudi crude oil and refined product volumes passing through the\nBab el-Mandeb Strait had just reached a record high last month,\nexceeding 4 million barrels per day,\u201d he added.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/oil-doomsday-alert-in-asia-red-sea-blockade-claims-first-victims-1784699499", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }