Oil prices climb as Houthi attacks shape Saudi crude shipments in Red Sea

Saudi Arabia’s crude exports are being rerouted rather than halted, analysts say, as Houthi missile and drone attacks in the Red Sea continue to disrupt shipping lanes. The militant group’s recent strikes on commercial vessels and oil‑tankers have prompted charterers and shipping companies to adjust itineraries, opting for longer routes around the Cape of Good Hope or employing heavily escorted convoys through the Bab el‑Mandeb strait. While the attacks have not stopped the flow of Saudi oil, they have altered the logistics chain, raising freight costs and influencing which carriers are selected for the cargo.

The heightened security concerns have coincided with a surge in global oil prices, driven by broader geopolitical tensions and supply‑demand imbalances. Market data show Brent crude trading above $90 a barrel, reflecting both the premium on risk‑laden transport routes and the tighter market outlook. Analysts note that the primary impact of the Houthi campaign is on the cost and timing of deliveries rather than on the volume of Saudi crude reaching market, suggesting that the kingdom’s export capacity remains intact despite the ongoing maritime threats.