Red Sea Security Risks Persist, Diverting Tankers and Raising Costs

S&P Global, Lloyd's List, Reuters · Jul 29, 2026 00:00

Persistent security threats in the Red Sea, including Houthi attacks and a potential Houthi-imposed fee on transiting vessels, continue to divert crude and product tankers. VLCC crossings through the Bab el-Mandeb have declined by 50% in the past week, increasing voyage distances and operational costs for Asian-bound cargoes.