The oil market appears to be bracing for a weeks-long disruption to shipping in the southern Red Sea, where Houthi militants have for months been attacking merchant vessels in response to Israel’s war in Gaza.
Charters of tankers to haul crude and fuels — which for some vessels are arranged up to a month in advance — reveal growing numbers of the vessels are being hired for routes that will avoid the danger zone, according to shipowners, brokers and traders.
Airstrikes in Yemen on Jan. 12 by the US and UK have heightened a sense of chaos for ships in the area, especially after western navies subsequently warned vessels to stay away.
