Disruptions at Hormuz and Bab el-Mandeb Tighten Global Oil Flows

In late July 2026, Kpler data showed a sharp decline in vessel movements: only 10 commodity vessels transited Hormuz on Saturday, down from 19 the day before, and passages through Bab el-Mandeb fell to 18 on Sunday, down from 27 on Saturday. The slowdown follows recent tanker attacks, a Houthi-declared maritime embargo against Saudi Arabia (July 20), and heightened Iran-U.S. hostilities.

Key oil chokepoints remain starved of traffic. Red Sea, Hormuz tanker traffic stays deeply depressed

The Strait of Hormuz carries roughly 20 million barrels of oil per day—about 20 percent of global petroleum liquids consumption—and a fifth of the world’s LNG trade (EIA). Economic researcher Ahmed Abu Qamar noted that existing overland pipelines (Saudi Arabia’s East-West “Petroline” and the UAE’s Abu Dhabi Crude Oil Pipeline) together pump about 9 million barrels per day, far short of the Hormuz volume.

Al Jazeera (website)ReutersReutersTraffic slows and costs rise for Bab el-Mandeb and Hormuz transits Houthi blockade threats and US-Iran conflict disrupt oil tanker traffic through Red Sea and Strait of Hormuz Key oil chokepoints remain starved of traffic. Red Sea, Hormuz tanker traffic stays deeply depressed 2nd Qatari-LNG Tanker Hit By Iran In Hormuz While 22 Chinese Ships Safely Cross Red Sea Without Harm

• July 31: The Bermuda-flagged LNG carrier *GASLOG SHANGHAI* was struck 11 nm northeast of Limah, Oman. Engine-room damage was reported but the crew remained safe. The UK Maritime Trade Operations (UKMTO) noted a large splash and explosion. The IRGC later claimed responsibility for disabling two tankers in the southern Hormuz corridor, though the claim is unverified.

2nd Qatari-LNG Tanker Hit By Iran In Hormuz While 22 Chinese Ships Safely Cross Red Sea Without Harm

• July 30: Houthi forces struck four Saudi tankers in the Red Sea. Saudi Arabia responded by forming a 14-country maritime coalition headquartered in Riyadh to protect shipping through Bab el-Mandeb, the Red Sea, and the Gulf of Aden.

2nd Qatari-LNG Tanker Hit By Iran In Hormuz While 22 Chinese Ships Safely Cross Red Sea Without Harm

• Hormuz capacity: 20 million bpd (EIA).

Al Jazeera (website)

• Pipeline capacity: Saudi Petroline ? 7 million bpd; UAE pipeline ? 1.8 million bpd; combined ? 9 million bpd.

Al Jazeera (website)

• Traffic counts: Bab el-Mandeb – 18 vessels (Sunday), 27 (Saturday), 28 (Friday). Hormuz – 10 vessels (Saturday), 19 (Friday).

Key oil chokepoints remain starved of traffic. Red Sea, Hormuz tanker traffic stays deeply depressed

• Insurance premiums: War-risk premiums for Saudi ports rose to 1 percent of vessel value in the last week of July, up from 0.25 percent the prior week.

Traffic slows and costs rise for Bab el-Mandeb and Hormuz transits

India’s External Affairs Minister S. Jaishankar urged Iran’s counterpart Syed Abbas Araghchi to halt attacks on commercial shipping, emphasizing “deep concerns” over regional hostilities. ADNOC Logistics confirmed the purchase of five VLCCs for about $590 million and three VLGCs for roughly $115 million each, stating the moves aim to secure crude transport amid “regional crisis” disruptions.

Reuters

The pressure on both chokepoints forces shippers to reroute vessels around the Cape of Good Hope or through longer Suez-Gibraltar corridors, extending transit times dramatically—for example, a fully laden gas carrier from Yanbu to the Philippines could see a voyage increase from 19 to 47 days. Longer routes raise freight costs, fuel consumption, and insurance premiums, contributing to higher global oil prices; Brent crude futures rose more than 25 percent in August as traders priced in supply risk.

Traffic slows and costs rise for Bab el-Mandeb and Hormuz transits

Exact vessel counts are uncertain because many tankers switch off Automatic Identification System (AIS) transponders to reduce visibility.

Key oil chokepoints remain starved of traffic. Red Sea, Hormuz tanker traffic stays deeply depressed

• “Had a tele-conversation with FM Araghchi of Iran this evening. Conveyed our deep concerns at the ongoing hostilities in the region. Strongly urged that attacks on commercial shipping and seafarers be avoided under any circumstance. India condemns any such attack by any party,” — Mr. Jaishankar, external affairs minister

The Hindu