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Houthi forces declared a maritime blockade on Saudi Arabia on July 20 and attacked two Saudi oil tankers in the Red Sea on July 22, threatening the kingdom’s alternative oil export corridor as global chokepoint disruptions reached historic levels.
The escalation marks a critical turning point in the regional crisis now in its seventh month. Saudi crude exports through the Red Sea port of Yanbu had surged to 3.5 million barrels per day in June, up from 240,000 barrels per day before the crisis, as shippers sought to bypass the blocked Strait of Hormuz. That alternative route is now under direct threat. The development leaves four of the five major global maritime chokepoints effectively disrupted, a situation without modern precedent for energy and commodity shipping.
On July 22, Houthi forces struck the tankers Encelia and Layla using ballistic missiles, cruise missiles, and drones, setting fires on both vessels. All crew members were reported safe. Two days later, on July 25, Houthi ballistic missiles hit refineries at Jizan and Yanbu after Saudi forces bombed Hodeidah in Yemen. Windward, a maritime intelligence firm, logged five heat signatures inside the Jizan refinery complex following the strikes.
Red Sea alternative route at risk
The Houthi blockade represents a direct challenge to what had become Saudi Arabia’s primary oil export pathway. Kpler energy data showed Yanbu exports reached 3.5 million barrels per day in June, making the Red Sea corridor vital to global oil supply stability. The Joint Maritime Information Center, a coalition led by the US Navy, warned on July 22 that Houthi forces had completed preparations to attack shipping, including deployment of missiles and drones positioned near Bab el Mandeb.
An EU naval mission issued a warning that merchant vessels linked to Israeli, US, or Saudi interests should avoid transiting the Red Sea and Gulf of Aden until the threat level decreases. Several tankers turned back before reaching Bab el Mandeb following the blockade declaration.
Houthi officials framed the blockade as retaliation for a Saudi strike on Sanaa airport on July 13 that ended an informal truce that had lasted four years. The group stated that all vessels loading or discharging cargo at Saudi ports are prohibited, according to reports from Al Jazeera and CNBC.
Hormuz remains blocked
The Red Sea escalation compounds an already severe crisis at the Strait of Hormuz, which has remained effectively closed to commercial traffic for 147 days. Only one vessel transited the strait on July 25, according to tracking data. The United States carried out 13 consecutive nights of strikes on Iran before pausing on July 25 to allow space for peace talks, though Iranian officials denied agreeing to any new ceasefire.
Brent crude prices surged approximately 40 percent in July, reaching $102 per barrel before pulling back to around $90. The price spike reflects market anxiety over simultaneous disruptions to both Hormuz and the Red Sea alternative. CNN reported that fresh US sanctions were imposed on Tehran following Iranian attacks on commercial ships in July.
Supply chains face historic pressure
The dual chokepoint crisis is creating severe operational and commercial pressure across maritime logistics. Project cargo operators face extreme compliance risk as flag hopping, AIS manipulation, and fraudulent vessel registrations intensify under sanctions pressure. Windward tracked 2,108 dark fleet vessels in the first quarter of 2026, with numbers likely higher now given the crisis intensity.
US forces used disabling fire against a fraudulently flagged, sanctioned LPG tanker in the Gulf of Oman on July 24 after four attempts to run the blockade, the first confirmed action of its kind. US CENTCOM has redirected more than 62 commercial ships and disabled at least four vessels to enforce the Iran blockade since April 13.
Three tankers assessed as high risk were holding position within 50 to 60 nautical miles of the blockade line west of Hormuz, two carrying a combined total exceeding 2.4 million barrels of Iranian crude, according to Windward data from July 25.
Pakistan and China are attempting to revive talks between the United States and Iran. Chinese officials are increasingly concerned that attacks on Gulf states and Hormuz disruptions are hurting their economic interests, CNBC reported. China purchases approximately 80 percent of Iranian crude and about 33 percent of its total oil imports transit Hormuz.
The July 2026 outlook from the Energy Information Administration forecasts global oil consumption decreasing by 1.2 million barrels per day in 2026, concentrated in Asia, as high energy costs and a slowdown driven by tariffs risk demand destruction that could further depress project cargo volumes.
