Saudi tanker hit as Red Sea risks widen

A Saudi-owned oil products tanker was struck in the Red Sea, triggering a fire at its bow and raising fresh concerns over the security of energy shipments along one of the world’s most important maritime corridors.

All crew members aboard the Encelia were safe after the attack, the Transport General Authority said on Thursday. Emergency measures were taken to secure the vessel, contain the fire and prevent damage to the marine environment. The ship remained afloat, with no casualties reported.

Yemen’s Houthi movement claimed it had targeted the Encelia and another tanker, the Layla, using ballistic missiles, cruise missiles and drones. The group said both vessels had violated a naval blockade it had declared against Saudi ports and shipping.

The extent of any damage to the Layla could not immediately be confirmed. Maritime security alerts reported a vessel being hit in waters off Saudi Arabia’s south-western coast, followed by a fire on board. The Encelia had issued a distress call after being struck near the approaches to the Jizan region.

The attack marked a significant escalation in Houthi operations in the Red Sea. The group had threatened to stop vessels linked to Saudi Arabia as regional hostilities expanded and commercial shipping faced mounting pressure across the Gulf, the Strait of Hormuz and the Bab el-Mandeb passage.

The Encelia is a Saudi-flagged oil products tanker built in 2003. The vessel is about 250 metres long and is designed to transport refined petroleum products. Shipping databases identify it by International Maritime Organization number 9240172.

The Houthis said the strike was part of their effort to enforce a maritime blockade. They also claimed that several other vessels had altered course or withdrawn from the area after receiving warnings. Those claims could not be independently verified.

The incident is likely to reinforce caution among tanker operators, shipowners and insurers already dealing with higher security costs. War-risk premiums for vessels using the Red Sea can rise sharply after confirmed attacks, while crews may demand additional protection or compensation before entering high-risk waters.

Shipping companies could also reconsider routes through the Bab el-Mandeb, the narrow waterway linking the Red Sea to the Gulf of Aden. Rerouting vessels around the Cape of Good Hope adds thousands of nautical miles to journeys between Asia, the Middle East and Europe, increasing fuel consumption, freight rates and delivery times.

Saudi Arabia has relied on its Red Sea infrastructure to maintain oil exports when movement through the Strait of Hormuz becomes difficult. The East-West Pipeline carries crude from the kingdom’s eastern fields to Yanbu, allowing shipments to bypass the Gulf and load from terminals on the Red Sea coast.

That alternative route becomes less effective when vessels departing Yanbu face missile and drone threats farther south. Sustained disruption could complicate the kingdom’s ability to redirect exports and weaken one of the main contingency systems protecting global oil supplies.

Two large tankers carrying Saudi crude for China were continuing towards the Bab el-Mandeb on Thursday. Each was carrying about two million barrels loaded at Yanbu, illustrating the volume of energy trade exposed to worsening security conditions.

Oil prices rose after the attacks, with Brent crude moving above $95 a barrel during volatile trading. Markets were already assessing supply risks linked to wider hostilities, restricted tanker movements and uncertainty around key shipping lanes.

The Red Sea carries crude oil, refined fuels, liquefied natural gas and containerised goods between Asia and Europe. Even when physical supplies remain available, attacks can disrupt schedules, reduce vessel availability and push up insurance and chartering costs.

Houthi forces began sustained attacks on commercial shipping in late 2023, initially describing their campaign as support for Palestinians in Gaza. Missiles, drones and explosive boats were used against vessels passing Yemen, prompting multinational naval deployments and air strikes on Houthi-controlled territory.