Houthi blockade threatens Saudi oil export routes — expert

Asian refiners have sought alternative routes for crude shipments from Saudi Arabia's Yanbu port on the Red Sea, including via the Suez Canal and around Africa's Cape of Good Hope, after Houthi forces in Yemen stated they would impose a naval blockade.

Ship-tracking data showed at least one vessel reversing course westward and reduced transits through the Strait of Hormuz in recent days. Analysts have noted that these routes could add up to four weeks of transit time and raise freight costs compared with standard paths.

The Houthis in Yemen have announced a blockade of Saudi Arabian shipping through Red Sea ports, including at the Bab el-Mandeb strait. The group, described as Iran-backed, stated the measure would target the top oil exporter following recent exchanges of fire.

Reports indicate this could add to existing maritime disruptions in the Strait of Hormuz linked to US-Iran confrontations.

A Reuters poll of economists conducted July 7-16 shows that most Gulf Cooperation Council economies are now projected to contract more sharply in the current year than estimated three months earlier, with median forecasts indicating declines of 8.1% for Kuwait and Qatar, 5.

1% for Bahrain, and 0.5% for the UAE. Saudi Arabia and Oman remain the only GCC economies expected to expand. The poll links the revisions to reduced export volumes through the Strait of Hormuz, higher freight costs, and weaker investor sentiment, even as oil prices have risen.

Initial reports indicate that a limited number of vessels transited the waterway during the first full day after the United States implemented a naval blockade of Iran. These observations have not been independently verified.