The Iran-aligned Houthi rebels in Yemen have declared a maritime blockade against Saudi Arabia, raising alarms for energy supply chains in Asian countries, including South Korea. This blockade could disrupt Saudi Arabia's alternative oil transport route through the Red Sea, which has been used to avoid the Strait of Hormuz.
According to Reuters on July 20, the Houthis announced that the maritime blockade against Saudi Arabia would take effect immediately. However, it remains unclear how the blockade will be implemented or whether it will lead to actual attacks on vessels.
Yemen, controlled by the Houthis, is adjacent to the Bab el-Mandeb Strait, the southern gateway to the Red Sea. This area has become a crucial detour for Saudi oil exports to Asia since traffic through the Strait of Hormuz has significantly decreased.
Saudi Arabia has increased its oil exports through the Red Sea by transporting crude via land pipelines to the western port of Yanbu. Recent figures show that oil shipments from Yanbu have surged to an average of 4 million barrels per day, up from about 973,000 barrels per day a year ago.
The primary destinations for oil and petroleum products shipped from Yanbu include Asian countries such as South Korea, Japan, China, Singapore, and India. Any disruption in the Bab el-Mandeb Strait would directly impact the energy supply from the Middle East to Asia, which has been maintained as an alternative to the Strait of Hormuz.
Oil volumes passing through the Bab el-Mandeb Strait have also increased, rising from 4.2 million barrels per day last year to 7.4 million barrels per day last month, accounting for approximately 7% of global oil production.
Noam Rayden, a senior researcher at the Washington Institute for Near East Policy, stated, "If the Houthi blockade materializes, Asian countries could bear the brunt of the impact." He noted that disruptions in shipping operations could lead to longer transport distances, as well as increased insurance premiums and freight costs.
In fact, the war risk insurance for vessels passing through the Red Sea has surged from about 0.3% of the vessel's value on July 17 to approximately 0.75% following the Houthi blockade announcement.
* This article has been translated by AI.
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