The latest example of the worldwide impact of the continuing conflict over the Strait of Hormuz is that an oil tanker from China has done a U-turn, under threat from the Iran-aligned Houthi militia, which on Monday declared a maritime embargo on Saudi Arabia.
According to Bloomberg News, the VLCC Xin Long Yang, described as “a very large crude carrier,” turned around in the Southern Red Sea after threats from the Houthis that they would target ships going into or out of Saudi Arabia’s ports. The ship in question was “ hauling about 2 million barrels of Saudi crude to China,” Bloomberg said.
(August 1, 2025) The Arleigh Burke-class guided-missile destroyer USS Wayne E. Meyer (DDG 108) approaches the Nimitz-class aircraft carrier USS Nimitz (CVN 68) for a replenishment-at-sea in the U.S. Central Command area of responsibility. (Official U.S. Navy photo)
(July 28, 2017) An F/A-18F Super Hornet assigned to Air Test and Evaluation Squadron (VX) 23 approaches the aircraft carrier USS Gerald R. Ford (CVN 78) for an arrested landing. The aircraft carrier is underway conducting test and evaluation operations. (U.S. Navy photo by Erik Hildebrandt/Released) 170728-N-UZ648-161
That development, the report said, “underlines how the Houthi rebels’ move threatens Saudi oil exports from the Red Sea hub that has become a crucial workaround since the Iran war severely disrupted shipping out of the country’s Persian Gulf ports.”
Bloomberg added that the tanker, if it can’t go through the Red Sea, could instead go through the Suez Canal and around West Africa, although if it did so, it would have to unload half of its cargo at the Sumed pipeline and then reload it later. Doing so, however, would double the length of the journey.
Another Night of Strikes, and an Embargo Declaration
The ship’s U-turn came following what CNBC called the tenth straight night of U.S. strikes on Iran.
U.S. Central Command declared that the strikes had hit “Iranian military command centers, maritime capabilities, missile and drone launch sites, and air defense systems,” with an aim towards making it more difficult for Iran to attack commercial vessels trying to get through the Strait of Hormuz.
CNBC had earlier reported that Saudi Arabia has “diverted millions of barrels of oil per day” to the Red Sea terminal.
The Houthis, meanwhile, had declared the maritime embargo on Saudi oil on Monday, after months of threats to close the Bab el-Mandeb Strait, a crucial choke point between Yemen and East Africa.
“The criminal Saudi enemy continues its unjust and oppressive siege on our dear people for nearly twelve years, plundering our resources and imposing a comprehensive blockade on our ports and airports by land, sea, and air,” the Houthis announced Monday, through the state-run Yemen News Agency.
“Our people cannot endure this unjust siege and aggression without taking a stand; our great people are a faithful and resilient people, a people of faith and wisdom, with a just cause, and they have the full right to confront this unjust siege and aggression by all available means.”
The Houthis declared the maritime embargo, while affirming “the right of our great people to respond to the blockade with a blockade, and to respond to all escalation with all escalation, thus solidifying this equation.” They went on to declare that “any foolish act committed by the reckless Saudi enemy through all escalation will be met with a comprehensive and decisive escalation, by Allah’s will and power.”
Gas Prices Rise Some More
The disruption to oil supply has already led to a rise in oil prices, and Americans are starting to feel the pain at the gas pump.
According to Gas Buddy’s weekly report on Monday, the average gas price had reached $3.95 per gallon, a 13-point jump from the week before, with the average likely to exceed the $4 mark shortly. The current average is 6.5 cents higher than a month ago and 85.7 cents per gallon higher than a year ago, and represents the second straight week of double-digit gains.
“Average gasoline and diesel prices rose in nearly every state for the second straight week, with the national average price of gasoline likely to reach $4 per gallon within the next 48 hours and diesel already back above $5 per gallon nationally,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in the report. The Associated Press reported later on Monday that the average had indeed exceeded $4.
“While the ongoing U.S.-Iran situation continues to weigh on markets, the story is increasingly less about crude oil and more about global refining capacity—the Strait of Hormuz remains closed while continued Ukrainian attacks on Russian refineries further squeeze an already strained supply picture.”
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist, and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, national security, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
