Confirmed tanker reversals signal physical oil supply disruption, pushing gasoline above $4 a gallon amid dual Gulf chokepoint risks.
Two Saudi crude tankers bound for China and India reversed course in the Red Sea after Houthi threats, marking a shift from verbal warnings to actual supply disruption. The reversals follow Monday’s Houthi announcement of a naval blockade on Saudi Arabia, targeting vessels loading or discharging its oil.
The Red Sea route had absorbed Saudi crude diverted from the Strait of Hormuz, which remains under pressure after recent attacks. Goldman Sachs previously warned Brent could near $120 a barrel if Hormuz disruptions persist, adding to freight and insurance cost risks.
Gasoline prices have climbed above $4 a gallon, highlighting inflationary pressures from the conflict. With both key export routes now threatened, markets face heightened volatility as physical supply constraints escalate.