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Tankers making u-turns in Red Sea after Houthi threat
The 'Xin Long Yang' of the Cosco Shipping, which had completed loading two million barrels of Saudi crude at Yanbu on July 20, and the 'Rodos' (IMO: 1024948) of the Dynacom Tankers Management, which had loaded about 700,000 barrels of Saudi crude and was destined for India, made U-turns in the Red Sea on July 21, 2026, and headed towards the Suez Canal rather than sailing along the Yemeni coast at the sea’s mouth following a warning from Yemen’s Iran-aligned Houthi militia, suggesting a second potential disruption to a major shipping route that could compound the shortfall in global energy markets caused by the closure of the Strait of Hormuz. Forcing tankers to use the Suez Canal rather than exit the Red Sea through the Bab el-Mandeb would add weeks to shipments to customers in Asia, requiring sailing through the Mediterranean and around Africa. On July 20 the Houthis had declared a naval blockade against Saudi Arabia, opening a potential new front in the U.S.-Israeli war with Iran and raising the threat to global energy supplies and trade beyond the Gulf. Shipping companies were warned them not to load or discharge cargo at Saudi Arabian ports and said such activity may result in being targeted in any location. The Houthis were controlling the northern Yemen, including the coast of the Bab el-Mandeb at the mouth of the Red Sea. Since the Strait of Hormuz controlling access to the Gulf has been blocked during the Iran war, Saudi Arabia’s Red Sea port of Yanbu has become the main alternative route for Middle East oil, allowing exports of millions of barrels per day. War risk insurance costs have already ticked higher in the past 24 hours with risk assessments for Saudi ports being re-evaluated on July 21. Vessels calling at Saudi Arabian ports were advised to reconsider transiting the Red Sea and to consider implementing enhanced mitigation measures, as vessels calling at Saudi Arabian ports were at high risk. The 'New Prime' (IMO: 9799123) of the Associated Maritime Co. HK, which was scheduled to arrive at Yanbu later this week to load crude, has also turned back off Oman before entering the Red Sea. Yanbu was still loading oil onto ships that were already in the Red Sea or arriving via Suez. The 'Olympic Luck' (IMO: 9424211), which had passed into the Red Sea through Suez, was still heading for Yanbu, as were several ships that were already close by.
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