Houthi threats cause tankers to make sharp U-turns, oil prices jump over $95

Recent threats from Yemen's Houthi rebels regarding shipping in the Red Sea have prompted several oil tankers to alter their routes, leading to a notable increase in global oil prices. On July 20 and 21, 2026, the Iran-aligned Houthis announced a naval blockade against Saudi Arabian vessels, warning that any tankers using Saudi ports in the Red Sea faced potential targeting, particularly within the crucial Bab el-Mandeb Strait.

In response to these warnings, at least three to seven oil tankers, laden with Saudi crude destined for countries like China and India, executed sharp U-turns in the Red Sea on July 21 and 22. These vessels diverted their courses towards the Suez Canal, bypassing the Yemeni coastline and opting for a significantly longer and more costly journey around Africa.

This disruption, compounding existing concerns over shipping in the Strait of Hormuz due to ongoing US-Iran hostilities, pushed benchmark Brent crude futures above $95 a barrel on July 22, reaching its highest point in six weeks. Analysts anticipate that prolonged Red Sea diversions and heightened geopolitical tensions could drive oil prices even higher in the near future.