VLCCs avoid Red Sea strait as Houthi threats boosts rates amid rising shipping risks

AI Summary

Very large crude carriers (VLCCs) avoid the Bab al-Mandab Strait due to increased threats from Houthi military advances, leading to higher oil shipping rates. Other commercial vessels remain more willing to transit the Red Sea despite escalating security risks.

Large tankers have steered away from the Bab al-Mandab Strait amid intensifying Houthi military advances and attacks on Saudi energy infrastructure, supporting oil shipping rates while other types of commercial ships show more willingness to tolerate Red Sea transit risks. Earlier this month, the militant group’s troops moved southward into the coastal city of Mokha ...