By Weilun Soon, Grant Smith, and Nicholas Lua
July 22, 2026 (Bloomberg) – Shipping challenges in the Middle East have intensified. A warning from the Iran-backed Houthi rebels against servicing Saudi ports has led to unusual movements in the Red Sea. Meanwhile, a European Union naval group has raised its threat level for the waterway.
Tracking data shows that two vessels headed to Asia are now moving north toward the Suez Canal, which is a significantly longer route. Other ships have paused their journeys as a precaution.
EUNAVFOR ASPIDES, the EU military operation in the Red Sea, has elevated its threat assessment from low to medium. An advisory indicates that “merchant vessels with Israeli, U.S., or Saudi links should avoid the Red Sea and Gulf of Aden until the threat level decreases.”
Global energy markets are unsettled as tensions between the U.S. and Iran escalate, with both sides exchanging strikes for over a week. There are growing concerns that the Houthi threat could impact Saudi exports via the Red Sea, a key route for oil flows redirected from the Persian Gulf. Brent crude prices have increased by more than 25% this month.
The Houthi group in Yemen is reportedly prepared to target shipping near the Bab el-Mandeb strait at the southern end of the Red Sea, according to the Joint Maritime Information Center, which monitors global naval security.
In recent movements, the liquefied petroleum gas tanker Gas King changed its course to exit the region through the Suez Canal after loading a cargo at the Saudi port of Yanbu. Initially heading south, the large gas carrier, now bound for Japan, executed a U-turn.
Another vessel, a Greek-owned Suezmax called Amazon, recently left port with over 1 million barrels of crude but has now redirected to the Suez Canal, where it is set to deliver its cargo to India, according to shipping fixtures.
It is unusual for vessels bound for Asia to navigate north in the Red Sea, as this route incurs significantly higher costs due to the longer journey around Africa and additional Suez Canal fees.
Additionally, the supertanker New Explorer, which is carrying Saudi oil and destined for Singapore, appears to be idling in the Red Sea after loading from Yanbu. The reason for the ship's near stop, indicated as “not under command,” remains unclear.
An Aframax vessel, Lahore, has also come to a halt after receiving its cargo from Saudi Arabia.
Earlier this week, several oil tankers altered their routes after Houthi rebels sent warnings against visiting Saudi ports. Nonetheless, one of those ships, Xin Long Yang, has returned to its original course toward Bab el-Mandeb.
Despite the Houthi threats, loading operations at the Saudi port of Yanbu continued on Wednesday, with some tankers reporting they were docked there. On Tuesday, some Asian buyers of Saudi oil were still sending vessels into the Red Sea expecting to collect their shipments.
In the days leading up to the Houthi warning, Saudi Arabia exported record amounts of crude through its Red Sea terminals, shipping 5.9 million barrels a day from Yanbu in the week up to July 17, according to tanker tracking data from Bloomberg.