Oil Tanker Makes Red Sea U-Turn After Houthi Threats, Reroutes Around Africa In Costly Transit

ING's Singapore-based head of commodities, Warren Patterson, was asked during a recent webinar what it would take for Brent crude to exceed $120 a barrel. His answer was "not much," warning that prices could soar well into triple-digit territory if the Strait of Hormuz remains blocked through August and threats to Red Sea shipping intensify.Patterson's warning about disruptions at the Strait of Hormuz and the Bab el-Mandeb Strait echoes concerns voiced across commodity desks this week: the longer these critical chokepoints remain impaired, the greater the upside risk to Brent, WTI, and fuel prices at the pump.Fresh Houthi announcement, which muddles the waters a bit.

Paraphrasing: No closure of the Bab el-Mandeb strait; blockade only targets "the Saudi side," but that leaves unclear whether it includes (or not) foreign vessels lifting Saudi crude (or only Saudi oil tankers). https://t.co/tXsrjfQ4HK

— Javier Blas (@JavierBlas) July 24, 2026Strait of Hormuz CrossingsBab el-Mandeb CrossingsThe latest signs of trouble in the southern Red Sea come from a Reuters report stating that the Danish-flagged tanker Torm Innovation was rerouted from Yanbu, Saudi Arabia, through the Suez Canal and around the Cape of Good Hope as an alternative to the Bab el-Mandeb Strait after two Saudi tankers were hit with projectiles by the Iran-backed Houthis earlier this week."Given the security situation in the southern part of the Red Sea, the vessel is sailing via the Suez Canal and around the Cape to Asia. This reflects our cautious approach to crew safety, which remains our highest priority," a Torm spokesperson told the outlet.Rerouting around the Cape of Good Hope instead of transiting Bab el-Mandeb adds weeks of sailing time and sharply increases freight, fuel and insurance costs.Longer voyages also tie up vessels for extended periods, effectively reducing available tanker capacity and tightening energy markets. The result will be higher tanker rates.The rerouted tanker is carrying a 500,000-barrel cargo of Saudi naphtha from Yanbu to Japan.🇸🇦Saudi Arabia's escape route from Hormuz is now being REROUTED again.