{"id":66024,"date":"2026-08-05T16:08:15","date_gmt":"2026-08-05T20:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/red-sea-crisis-escalates-houthis-strike-saudi-tankers-as-hormuz-remains-closed\/66024\/"},"modified":"2026-08-05T16:08:15","modified_gmt":"2026-08-05T20:08:15","slug":"red-sea-crisis-escalates-houthis-strike-saudi-tankers-as-hormuz-remains-closed","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/red-sea-crisis-escalates-houthis-strike-saudi-tankers-as-hormuz-remains-closed\/66024\/","title":{"rendered":"Red Sea Crisis Escalates: Houthis Strike Saudi Tankers as Hormuz Remains Closed"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Houthi rebels struck two Saudi oil tankers, the <em>Wafa<\/em> and <em>Daisy<\/em>,<\/strong> in the northern Red Sea and Gulf of Aden, intensifying a maritime blockade that has targeted <strong>nine vessels<\/strong> since July 22.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> rebounded to over $80 a barrel<\/strong> following the attacks, as markets weighed the threat to Saudi Arabia\u2019s alternative export routes while the <strong>Strait of Hormuz remains effectively closed.<\/strong><\/li>\n<li><strong>Saudi Arabia has rerouted up to 7 million barrels per day<\/strong> through its East-West Pipeline to Red Sea ports like Yanbu to bypass the Hormuz conflict, but these terminals are now under direct fire.<\/li>\n<li><strong>Regional powers including Egypt, Turkey, and Pakistan met in Amman<\/strong> to discuss de-escalation, emphasizing the urgent need to restore freedom of navigation in critical energy corridors.<\/li>\n<\/ul>\n<h2>Houthi Blockade Targets Saudi Energy Lifeblood<\/h2>\n<p>The Iranian-backed Houthi movement significantly escalated its maritime campaign on Wednesday, claiming successful ballistic missile strikes on two Saudi-linked oil tankers. The group\u2019s military spokesperson, Yahya Saree, identified the targeted vessels as the <em><strong>Wafa<\/strong><\/em>, struck near the northern Red Sea port of Yanbu, and the <em><strong>Daisy<\/strong><\/em>, hit in the Gulf of Aden. These latest incidents bring the total number of Saudi tankers targeted by the group to <strong>nine<\/strong> since they declared a formal blockade on July 22.<\/p>\n<p>The Houthis characterized the strikes as a &quot;blockade-for-blockade&quot; strategy, retaliating against what they describe as Saudi-led aggression and the ongoing U.S. naval blockade of Iranian ports. According to Houthi claims, their operations have already forced <strong>29 Saudi tankers<\/strong> to either turn back or significantly alter their routes. While Saudi authorities have remained largely silent on the specific damage to the <em>Wafa<\/em> and <em>Daisy<\/em>, maritime security agencies confirmed explosions in the vicinity of the vessels.<\/p>\n<h2>Strait of Hormuz Closure Forces Risky Pivot<\/h2>\n<p>The strategic importance of the Red Sea has surged following the effective closure of the <strong>Strait of Hormuz<\/strong> due to ongoing U.S.-Iran hostilities. Before the conflict, approximately <strong>20% of global oil and LNG supply<\/strong> passed through Hormuz. With that route compromised, Saudi Arabia has leaned heavily on its <strong>East-West Pipeline<\/strong>, which transports crude from eastern fields to the Red Sea port of Yanbu.<\/p>\n<p>This pivot has seen Saudi seaborne crude exports through the <strong>Bab al-Mandeb Strait<\/strong> increase eightfold in recent months, reaching nearly <strong>100 million barrels in June 2026<\/strong>. However, the Houthi&#39;s expansion of attacks into the northern Red Sea suggests that even these alternative routes are no longer secure. Shipping data from Kpler indicates that traffic through the Bab al-Mandeb has already dropped by nearly <strong>50%<\/strong> as companies reroute vessels around the Cape of Good Hope to avoid the conflict zone.<\/p>\n<h2>Market Reaction and Diplomatic Efforts<\/h2>\n<p>Global energy markets reacted sharply to the renewed volatility, with <strong>Brent crude futures jumping 1.5% to approximately $80.50 a barrel<\/strong>. The price surge reversed a brief downward trend sparked by rumors of a potential U.S.-Iran ceasefire. Analysts at <strong>UBS<\/strong> noted that the &quot;geopolitical premium&quot; is returning to the market as the threat to physical supply becomes more acute. Saudi Aramco (<a href=\"\/stock\/ARMCO\">ARMCO<\/a>) recently reported a <strong>42% jump in second-quarter profit<\/strong>, driven by higher prices despite the logistical nightmare of securing its export routes.<\/p>\n<p>On the diplomatic front, the foreign ministers of <strong>Egypt, Turkey, Pakistan, and Saudi Arabia<\/strong> convened in Amman, Jordan, to seek a path toward de-escalation. The &quot;R-4 Group&quot; stressed that the security of the Strait of Hormuz and the Red Sea is a &quot;key pillar of global economic stability.&quot; While the group urged a return to the <strong>June 2026 Memorandum of Understanding<\/strong> between the U.S. and Iran, the situation on the ground remains volatile, with reports of Israeli spy aircraft over southern Syria and continued U.S. strikes on Houthi positions in Yemen.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Houthi rebels struck two Saudi oil tankers, the Wafa and Daisy, in the northern Red Sea and Gulf 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