Fresh Red Sea attacks threaten Egypt’s Suez Canal recovery as oil tanker traffic slumps

Fresh Red Sea attacks threaten Egypt’s Suez Canal recovery as oil tanker traffic slumps



According to vessel-tracking data from Kpler cited by Reuters, only 11 commodity tankers passed through the Bab el-Mandeb Strait on Sunday, the lowest daily volume recorded in several months.


The Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden, serves as the southern gateway to Egypt’s Suez Canal.


Together, the two waterways form one of the world’s most critical shipping corridors, carrying a significant share of global seaborne trade and oil shipments between Asia, Europe and the Middle East.


The latest slowdown follows a renewed escalation by Yemen’s Iran-backed Houthi movement, an armed group that controls much of northern Yemen, including the capital, Sana’a.


Since late 2023, the Houthis have repeatedly attacked commercial vessels in the Red Sea, saying they are targeting ships linked to Israel and its allies over the war in Gaza.


The campaign has forced many shipping companies to avoid the Red Sea, reshaping global trade routes and driving up transport costs.


Last week, the group announced a blockade on Saudi oil shipments and attacked two Saudi oil tankers, prompting several operators to review planned voyages through the region.


Some vessels already heading towards the Red Sea continued north to complete their journeys, while others turned back before entering the Bab el-Mandeb Strait as security risks intensified.








Of the 11 vessels that transited the strait on Sunday, seven were oil tankers, four outbound and three inbound.


Two of the inbound vessels were Very Large Crude Carriers heading to Saudi Arabia’s Red Sea port of Yanbu to load crude, while the third was linked to Russia.


Among the outbound vessels, three were carrying crude from Saudi Arabia, the United Arab Emirates and Russia to China, while another was transporting Saudi crude to Pakistan.


Shipping companies are also taking extra precautions. At least one tanker carrying Saudi crude reportedly switched off its Automatic Identification System (AIS) transponder while passing through the strait last week, reducing its electronic visibility as threats against commercial vessels mounted.


Maritime intelligence firm Windward said tanker operations at Yanbu had become significantly more discreet in response to the attacks.


Yanbu port has transitioned from predominantly AIS-active to entirely AIS-dark tanker operations at berth as vessels shield against the Houthi hit list,” the company said.


The renewed disruption comes as Egypt continues to grapple with the economic fallout from months of reduced Red Sea shipping.


Fewer vessels using the Suez Canal have cut one of the country’s most important sources of foreign exchange earnings, adding pressure to an economy already facing high debt-servicing costs and persistent inflation.


The security crisis has also changed global shipping patterns. Many shipping companies have diverted vessels around the Cape of Good Hope at the southern tip of Africa instead of sailing through the Red Sea and Suez Canal.


While the longer route reduces security risks, it increases fuel consumption, insurance premiums and voyage times, adding costs that can eventually feed into global energy prices and the cost of imported goods.


Although the United States and Iran have recently signalled a temporary easing of tensions, shipowners remain cautious.


Traffic through both the Bab el-Mandeb Strait and the Strait of Hormuz remained subdued on Monday, suggesting operators are waiting for a sustained improvement in security before restoring normal schedules.


Analysts say a prolonged disruption would not only weigh on global oil trade but could also delay the recovery of Suez Canal traffic, prolonging the economic strain on Egypt while keeping freight costs elevated for businesses trading with African markets.

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