Houthi Attacks Close Red Sea Route for Oil Shipments to Asia, Raising Shipping Costs

According to analysts at South Korea's Daishin Securities and LS Securities, two Saudi oil tankers came under attack in the Red Sea on July 23 as Yemen-based Houthi forces declared a maritime blockade, intensifying concerns about transportation costs for Asian nations including South Korea, Japan, China, and India.

The blockade threatens to significantly disrupt oil flows through the Bab el-Mandeb Strait. Data shows transit volumes surged from approximately 4 million barrels daily to 9 million barrels in the second quarter, according to analysts. Alternative routes via the Suez Canal and around Africa would add approximately four weeks to shipping times, substantially increasing costs. The disruption follows ongoing blockades of the Strait of Hormuz and compounds supply chain pressures already intensified by reduced Russian refinery output since late April.