Houthis force two Saudi oil tankers to U-turn in Red Sea as Gulf conflict escalates

Houthi Threats Disrupt Saudi Oil Shipments in the Red Sea

Houthi threats forced two Saudi oil tankers to turn around in the Red Sea, as traffic through the Strait of Hormuz slowed sharply following a series of tanker attacks.

Two oil tankers carrying Saudi crude for China and India made U-turns in the Red Sea after receiving warnings from Yemen's Houthi militia. The group sent emails to shipping companies, warning them not to load or discharge cargo at Saudi Arabian ports, stating that such activity "may result in being targeted in any location."

Iran Claims Strikes on Gulf Infrastructure

Iran claimed responsibility for strikes on infrastructure in Bahrain, Kuwait, and Jordan. Kuwait reported a second consecutive day of attacks on power-generation and water-desalination plants, with fires breaking out and electricity generation disrupted.

The Islamic Revolutionary Guard Corps (IRGC) claimed its cruise missiles destroyed Amazon's central data infrastructure hub in Bahrain and targeted US air defense systems and radar installations in the Bahraini areas of Muharraq and Riffa. Bahraini, US, and Amazon officials issued no immediate response.

US Strikes and Ceasefire Proposal

The US launched fresh strikes on Iranian targets. President Trump vowed further retaliation. Reuters reported a proposed 10-day ceasefire.

Oil Prices Surge

Crude prices hit multi-week highs amid shipping disruptions. Analysts warned that oil could reach $120 per barrel if fighting continues. West Texas Intermediate (WTI) reached six-week highs on Tuesday.

Pentagon Scrutiny

The New York Times reported that the Pentagon withheld information about dozens of US troops injured in Iranian attacks prior to the deadly Jordan missile strike.

Strait of Hormuz: Stalemate and Leverage

Despite daily US strikes on Iran and Iran's daily attacks on Gulf states, the situation remains a stalemate. Amin Saikal, emeritus professor at Australian National University, noted:

"Both sides have really been trying to inflict heavy damage on each other, and they've come really to a point of saturation in many ways. Logically, that should really lead them to negotiation. But of course, that is not really happening at the moment simply because the United States wants to gain control over the Strait of Hormuz, and that's something the Iranians will never give up."

The IRGC also reported new strikes on foreign tankers seeking "unauthorized" transit of the Strait of Hormuz, stating that "massive fires" broke out on two tankers that "took an unsafe route."

Market Sentiment

A Polymarket poll asked: "Strait of Hormuz traffic returns to normal by August 31?"

• Yes: 14%
• No: 87%