Red Sea Shipping Plunges After Houthi Strikes on Saudi Oil Infrastructure
Marine traffic through the Bab el-Mandeb strait in the Red Sea has sharply declined following Houthi attacks on Saudi oil installations along the Red Sea coast on Sunday, July 26, 2026. Reports indicate that only 11 vessels passed through the strait on that day, a drastic drop from typical weekly transits.
The Houthi military, led by Brigadier General Yahya Saree, claimed responsibility for strikes on the Aramco refinery in Jizan and export facilities in Yanbu, describing them as vital installations. Saree stated that the attacks targeted "a number of sensitive targets and points related to the supply and transport of crude oil from eastern Saudi Arabia to Yanbu" using drones, in retaliation for alleged Saudi drone incursions into Yemeni airspace.
The incident follows a Houthi blockade on Saudi Arabia announced on April 20, 2026, which has choked oil flows and reduced traffic in the Strait of Hormuz, pushing up crude prices. However, prices fell on Monday, July 27, after U.S. President Donald Trump indicated renewed talks between the U.S. and Iran.
According to Reuters, seven oil tankers transited the Bab el-Mandeb on Sunday, with three entering the Red Sea – two very large crude carriers heading to Yanbu to load Saudi crude, and one Russian-linked ship. Four tankers exited the Red Sea, carrying crude to China and Pakistan.
Data from marine intelligence firm Lloyd’s List reveals that Red Sea traffic began falling around July 13-14, 2026, when Houthi missiles struck Saudi Arabia following the kingdom’s alleged attack on a Houthi-controlled airport, breaking a four-year truce. Weekly transits through the Bab el-Mandeb dropped from approximately 350 to below 125 by July 20. Similarly, Suez Canal transits fell from over 250 to around 100.
China’s largest state-owned tanker operators are withdrawing very large crude carriers from Red Sea trade, prioritising safety over expected privileged access. Lloyd’s List noted that while outbound vessels carrying Saudi crude still transit the strait, the pullback reflects a broader risk calculus at major state-owned enterprises, where executives view the downside of an incident as far exceeding any commercial gains. The firm stated that “the Red Sea is probably off the table” and that the following days could be the peak of Houthi pressure.
Marine traffic in the Red Sea has been declining since the Houthis turned the Bab el-Mandeb into an anti-access/area-denial zone after the October 7, 2023, Hamas attack on Israel. The Houthis hijacked the car carrier Galaxy Leader on November 19, 2023. The attacks on commercial shipping prompted the U.S.-led Operation Prosperity Guardian in December 2023 to safeguard shipping lines, which continued until President Trump called it off, stating that the Houthis “just don’t want to fight, and we will honour that and we will stop the bombings, and they have capitulated.”
Despite the cessation of military operations, Red Sea shipping never returned to pre-October 2023 levels. Lloyd’s data shows that weekly transits through Bab el-Mandeb fell from over 500 in October 2023 to around 250. Container ship transits dropped from 621 per week in June 2023 to 229 in June 2026, a 63% decline. Total traffic through the Suez Canal and Bab el-Mandeb fell 42.9% from 4,246 transits in June 2023 to 2,425 in June 2026.
