Houthi Threats Force Saudi Crude Tanker Onto Suez Route To Asia
The Houthi threats to shipping in the Red Sea and its chokepoint, the Bab el-Mandeb Strait, have forced at least one oil tanker carrying Saudi crude to Asia to choose the much longer route through the Suez Canal, the Mediterranean, and around Africa. The supertanker Olympic Luck, partially laden wit
Source: OilPrice.com
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DW NOTE
Saudi Arabia now routes crude through the canal rather than past Yemen. The premium on Suez passage is cheaper than the risk of a Houthi strike. When the security cost of a shipping lane exceeds the transit toll of an alternative, the alternative becomes the primary route — and this one just did.