In reaction to Israel's assault in Gaza, Houthi militants have been bombing merchant vessels in the southern Red Sea for months. It looks as though the oil market is prepared for a weeks-long disruption to transportation in this area. A rising number of tankers are being chartered on routes that will bypass the danger zone, according to shipowners, brokers, and dealers. Tanker charters for the purpose of hauling fuel and crude are scheduled up to a month in advance for certain boats.
The US and UK's airstrikes in Yemen on January 12 have increased the confusion for ships operating in the region, especially as western navies have now issued advisories to vessels to avoid the area. Since the Houthis threatened to retaliate against the commercial fleets of both countries, many owners chose to avoid a route that typically handles 12% of all seaborne trade worldwide. "A growing number of owners are staying away from the region," stated Alexander Saverys, CEO of Euronav NV, a company whose fleet is capable of moving over 50 million barrels of oil. "What looked like something that could be solved within weeks, now could indeed have consequences for many months."