world · 2026-07-23
Houthi Tanker Strikes Threaten Saudi Oil Exports
Houthi forces attacked Saudi tankers Encela and Laylia on Jul 22 using missiles and drones, causing fires onboardThe strikes block Saudi Arabia's Red Sea route while Hormuz stays closed, risking ~25% of world oil and gas supplySaudi Aramco and refiners in China, India, and Japan risk supply cuts and price spikes if both chokepoints close
Which two tankers were hit and how?
Houthi spokesperson Yahya Saree named the tankers as Encela and Laylia, struck by ballistic missiles, cruise missiles, and drones. UKMTO confirmed one tanker reported a fire from an unknown projectile. The Houthis also forced ~10 other ships to turn back from the route.
How narrow is Bab al-Mandeb physically?
The strait is just 29km wide at its narrowest point, forcing all Suez-bound traffic into two channels. In 2024, about 4.1 billion barrels of crude oil passed through it, making concentrated missile or drone attacks feasible with limited assets, unlike the broader Hormuz.
What weapons did the Houthis use exactly?
Saree specified ballistic missiles, cruise missiles, and drones were used against the two named tankers ENCELA and LAYLIA. Ballistic missiles carry large warheads for hull damage, cruise missiles fly low to evade radar, and drones enable persistent surveillance and follow-up strikes on damaged vessels.
Has Saudi Arabia used this route before 2026?
Yes, but not as a primary export route. The Red Sea path became critical only after Feb 2026 when Hormuz closed. Before that, most Saudi oil exited via the Persian Gulf. The sudden dependence on Bab al-Mandeb made its vulnerability acute.
Why does closing Bab al-Mandeb matter now?
Saudi Arabia had shifted oil flows to the Red Sea and Bab al-Mandeb after the US-Israel war on Iran closed Hormuz in Feb 2026. Losing this backup route leaves Riyadh with no major export path. In 2024, 4.1Bn barrels, ~5% of global oil, passed through Bab al-Mandeb.
How did Houthis close Red Sea shipping before?
From Oct 2023, Houthi missile and drone attacks on Israel-linked vessels made the route unusable. Eilat port in southern Israel closed entirely. The disruption forced rerouting around Africa, adding weeks and cost to Asia-Europe trade.
What deal ended the 2023-2025 Houthi attacks?
A May 2025 US-Houthi agreement mediated by Oman ended the attacks. Journalist Hussain al-Bukhaiti noted the Americans had to negotiate after military pressure failed. The deal held until the Gaza ceasefire in Oct 2025, after which attacks paused.
Could Saudi Arabia build a pipeline bypass?
Saudi Arabia has no existing pipeline to bypass both straits. The East-West Pipeline (Petroline) moves crude from eastern fields to Yanbu on the Red Sea, but still requires Bab al-Mandeb for export. Building new overland capacity would take years and face terrain and cost barriers.
Who loses if both Hormuz and Red Sea close?
Asian refiners in China, India, and Japan buy most Saudi crude. If both straits close, they must source from further afield, raising freight costs and spot prices. In 2023-2025, Houthi Red Sea attacks pushed some shipping rates up several-fold before the Gaza ceasefire.
How much of India's oil comes via these routes?
India imports ~85% of its crude, with roughly 6 in 10 barrels coming from the Middle East. A dual strait closure would force Indian refiners to draw from US, African, or Latin American suppliers, lengthening supply chains by 2-3 weeks.
Which Indian refiners source most Saudi crude?
Reliance Industries and Indian Oil Corp are among the largest Saudi crude buyers. Reliance's Jamnagar complex, the world's biggest refinery, processes significant Saudi grades. Disruption would force costly spot purchases of substitute crudes with different sulfur content.
What alternatives do Asian buyers have?
US Gulf, Brazilian, and West African crude are the main alternatives. But these require larger tankers and longer voyages, raising freight costs ~50-100%. Refineries must also reconfigure for different crude qualities, adding operational complexity and margin pressure.
Source: aljazeera.com