Two oil tankers carrying Saudi crude to Asia reverse course in Red Sea after Houthi threats

DUBAI: Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday after Yemen's Iran-aligned Houthis threatened to target ships transporting Saudi oil, raising concerns over disruptions to one of the world's busiest energy trade routes.

The tankers, which had loaded crude at Saudi Arabia's Red Sea port of Yanbu for China and India, turned back towards the Suez Canal instead of transiting the Bab el-Mandeb strait into the Indian Ocean.

The Houthis, who control northern and western Yemen, announced a naval blockade on Saudi Arabia on Monday and warned shipping companies that vessels loading or unloading Saudi oil could be attacked.

The threat comes as the Strait of Hormuz remains heavily disrupted by the ongoing US-Iran conflict, making the Red Sea the primary alternative export route for Saudi crude transported by pipeline to Yanbu.

US President Donald Trump said the Houthis had not yet closed the Bab el-Mandeb strait but warned Washington would respond if they did.

"So far it hasn't happened," Trump said. "If something like that happens, we take care of it."

Oil prices rose more than 2% on Tuesday, with Brent crude trading above $91 per barrel and US gasoline climbing above $4 per gallon.

The conflict continued to intensify, with the US military carrying out strikes across Iran for an 11th consecutive night. Explosions were reported in Tehran, Chabahar, Konarak and Bushehr, according to Iranian media.

US Central Command said it had targeted Iranian military command centres, missile and drone launch sites, maritime assets and air defence systems during its campaign.

Iran, meanwhile, reported attacks on US military facilities in Bahrain, Kuwait and Jordan. Kuwait also said it was responding to a drone and missile attack.

The United Kingdom Maritime Trade Operations agency reported that a tanker in the Strait of Hormuz had been struck by a projectile, forcing its crew to abandon the vessel. Iran's Revolutionary Guards also said two oil tankers caught fire after explosions while attempting to use the southern shipping lane through the strait.

US Defense Secretary Pete Hegseth told lawmakers the war had cost $37.5 billion so far and requested an additional $70 billion in emergency funding.

Iran has also received a proposal from international mediators for a 10-day ceasefire aimed at reviving the interim truce agreed in June. Separately, Iranian Interior Minister Eskandar Momeni visited Pakistan and asked Islamabad to continue its mediation efforts.