India-bound Saudi crude tanker crosses Red Sea as Hormuz shipping comes under pressure

Two oil tankers carrying Saudi crude successfully crossed the Bab el-Mandeb Strait over the weekend despite heightened security risks, while shipping traffic through the Strait of Hormuz slowed sharply following fresh reports of attacks on commercial vessels, according to Kpler shipping data released on Monday.

The movement comes amid escalating tensions in the region after Iran-backed Houthi rebels expanded their maritime campaign. On July 20, the Houthis announced a maritime embargo against Saudi Arabia, widening the scope of attacks from the Gulf to key global shipping routes used for transporting crude oil and other commodities.

According to Kpler, only 18 commodity vessels passed through the Bab el-Mandeb Strait on Sunday, down from 27 on Saturday and 28 on Friday, indicating growing caution among shipping operators.

The Suezmax tanker Lesvos and the Very Large Crude Carrier (VLCC) Desh Vaibhav transited the Red Sea with their Automatic Identification System (AIS) transponders switched off, making their movements harder to track.

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The Malta-flagged Lesvos was carrying around 1 million barrels of Saudi crude, although its final destination was not immediately known. Meanwhile, Desh Vaibhav, loaded with about 2 million barrels of Saudi oil, is bound for Reliance Industries' refinery at Sikka in Gujarat, India.

Neither Dynacom, the manager of Lesvos, nor the Shipping Corporation of India, which operates Desh Vaibhav, responded to requests for comment.

Shipping activity also weakened in the Strait of Hormuz, a vital energy corridor through which nearly one-fifth of global crude oil and liquefied natural gas supplies typically pass. Kpler data showed only one tanker carrying Iranian liquefied petroleum gas (LPG) crossed the strait on Sunday, although some vessels may have disabled their AIS transponders, making traffic difficult to fully assess.

The UK Maritime Trade Operations (UKMTO) agency has reported three additional attacks on tankers since Saturday. Kpler data showed commodity vessel traffic through Hormuz dropped to 10 ships on Saturday from 19 on Friday, the highest daily count since mid-July.

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Among the vessels navigating the strait were the VLCCs Kiku, carrying about 1.4 million barrels of Qatari crude, and Rotterdam Energy, transporting around 2 million barrels of Das crude from the UAE. Managers of both vessels did not immediately comment on their voyages.

Negotiation starts

US President Donald Trump said fresh negotiations with Iran will begin on Monday after he decided against launching new military strikes, opting instead to pursue a diplomatic agreement aimed at ending the nearly six-month conflict. Trump said the talks would focus on reopening the strategically important Strait of Hormuz and addressing Iran's nuclear programme. Iran, meanwhile, said it was close to reaching an understanding with Oman on a new shipping route through the strait. Oil prices fell nearly 5% in early Asian trade after Trump's announcement, reflecting hopes of easing tensions and reducing risks to global energy supplies.

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(With Reuters, AFP inputs)