Tankers carrying Saudi crude for India u-turn after Houthis' threat
What's the story
Three oil tankers carrying Saudi Arabian crude oil for China and India have changed their course in the Red Sea. The vessels are now headed toward the Suez Canal instead of continuing along the Yemeni coast. This comes after Yemen's Iran-aligned Houthis issued a warning. The Houthis had announced a naval blockade on Saudi Arabia on Monday, blaming the kingdom for attacking Sanaa airport despite Yemen's internationally recognized government claiming responsibility.
Route disruption
Tankers headed to China, India change routes
Per Reuters, the Very Large Crude Carrier (VLCC) Xin Long Yang, which had loaded two million barrels of Saudi crude at Yanbu on Monday, was headed toward China via the southern exit of the Red Sea. However, it has now changed its course toward the Suez Canal.
Similarly, Amazon tankers and Rodos, which had loaded about 700,000 barrels of Saudi crude for India, have altered their routes toward Suez.
Group
Group's warning to shipping companies
After imposing the blockade, the group, in an email sent to shipping companies, had warned them not to load or discharge cargo at Saudi Arabian ports. It said such activity may result in being targeted "in any location."
The Houthis control northern Yemen, including the coast of the Bab el-Mandeb, a strait near the mouth of the Red Sea.
Since the blockage of Hormuz, Saudi Arabia's port of Yanbu has become the primary alternate route for Middle Eastern oil exports.
Insurance increase
War-risk insurance premiums spike as risks reassessed
Insurance industry sources told Reuters that the change in course of these tankers has led to a spike in war-risk insurance premiums as underwriters reassess the risks associated with Saudi ports.
"Vessels calling at Saudi Arabian ports are advised to reconsider transiting the Red Sea and to consider implementing enhanced mitigation measures," British maritime security company Ambrey said.
Ambrey warned vessels calling at Saudi Arabian ports were "at high risk."