Houthi Rebels Declared a Maritime Embargo Of Saudi Arabia. Tankers Are Already Turning Around In The Red Sea

Tankers carrying Saudi crude through the Red Sea turned around after the Houthi rebels announced a maritime embargo of the country.

Reuters detailed that seven vessels heading to Asia have reversed course so far. The group, which operates in Yemen, said on Monday that the decision is based on the "equation of 'an eye for an eye'" and will "respond to all escalation with all escalation, thus solidifying this equation."

It went on to threaten Riyadh further, saying it is ready "for all options, and 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."

CNBC noted that Saudi Arabia has been diverting millions of barrels of oil per day from the Strait of Hormuz to the Red Sea as a result of the war between the U.S. and Iran. The Houthis preventing Riyadh from doing so further exacerbates the disruption taking place in oil markets. Prices continue to soar, with brent crude topping $94 a barrel on Wednesday.

Traffic has plummeted further in the Strait of Hormuz. Citing data from Lloyd's List Intelligence, CNBC detailed that only 53 vessels crossed the key waterway in the week through July 20, a 66% drop compared to the previous week.

Data from Kpler also shows that traffic dropped right after hostilities began again, with Iran striking vessels not going through the route approved by Tehran. Daily crossings had averaged more than 20 before July 15 but have dropped to the single digits last week.

Tensions continue to escalate in the meantime. President Donald Trump said on Wednesday the U.S. will target a bridge or power plant every time Iran "shoots a ship in the Strait of Hormuz."

"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran," Trump said in a social media publication.

The U.S. has already been expanding its strikes against Iranian targets over the past days, targeting bridges and energy sites, as well as well as a tower located in a key Iranian port.

The strikes appeared to seek to cut off Iran's main port, Bandar Abbas, from roads leading to the central region of Iran, as well as Tehran.

Tehran acknowledged hits to "power infrastructure" for the first time last Friday, leading the country's Energy Ministry to call on people to use less power in the country's southern provinces.