Live updates: Trump calls off Iran strikes, warns of ‘last chance’ to sign a deal

With the Houthi threats against Saudi shipping in the Red Sea, some oil tankers are now forced to detour, a move that would increase the cost — and time — tremendously.

The Iran-backed Houthis in Yemen last month said they would target Saudi shipping trying to transit the Bab al-Mandeb chokepoint at the southern end of the Red Sea between Yemen and Djibouti. Six Saudi-operated tankers have since diverted around Africa.

The cost? Higher fuel consumption at a time when energy prices remain inflated due to the war in Iran, fatter bills for crews, increased insurance premiums and fewer voyages each tanker can complete for the time being — all of which raise overall expenses.

The shipping tracker firm Kpler reported last week that since Houthis began targeting Saudi shipping on July 22, average Saudi crude flows through the Bab al-Mandeb had fallen 50%.

The disruption will also disproportionately affect Asian countries, as the chokepoint has become a key alternative route for Saudi crude exports to the region since disruptions in the Strait of Hormuz, Kpler said.

Much like the obstruction of the Strait of Hormuz, hindering access to the Bab al-Mandeb underscores how even limited disruptions at one of the world’s busiest maritime chokepoints could have profound consequences for global shipping — and oil supply.