A drone strike that damaged two gas tankers in Egyptian waters has renewed concerns about the security of the nearby Suez Canal and the Sumed pipeline, vital export routes for Saudi Arabian oil since the outbreak of the Iran war.
As reported in Reuters, no party has claimed responsibility for Wednesday’s attack on the tankers at Egypt’s port of Damietta, located on a branch of the Nile Delta near the Mediterranean. While there have been no public threats against the Suez Canal itself, the incident has intensified concerns over the vulnerability of one of the world’s most important energy transit corridors.
Since the war between the United States and Iran began, Iran and its Houthi allies have targeted tankers transiting the Strait of Hormuz and Bab el-Mandeb. In contrast, Egypt’s Suez Canal and the Sumed pipeline have continued to provide relatively safe northbound routes for Saudi Red Sea oil exports.
Saudi Arabia redirected most of its oil exports to the Red Sea and its Yanbu terminal after the conflict began. However, Houthi threats and attacks over the past week have significantly reduced tanker traffic through Bab el-Mandeb, prompting more shipments to move north through the Red Sea toward the Suez Canal and the Sumed pipeline, according to data from market intelligence company Kpler.
Crude loadings from the Sumed pipeline, which transports oil from the Red Sea to Egypt’s Mediterranean port of Sidi Kerir, increased to 28.79 million barrels in July from 19.52 million barrels in April, before the Houthis issued a July 20 threat to prevent Saudi oil exports from leaving through Bab el-Mandeb.
Ship-tracking data from MarineTraffic showed around 30 vessels clustered near the Port Said anchorage at the Mediterranean entrance to the Suez Canal on Thursday, up from about 20 earlier in the week. “We’ve seen a clear increase in crude/condensate tankers heading north after loading in the Red Sea,” said George Morris of energy analytics firm Vortexa, attributing the shift to Houthi threats.
For Asian buyers, the rerouting means significantly longer voyages around Africa rather than passage through the Gulf of Aden. Yanbu cargoes accounted for around 15% of Asia’s seaborne crude and condensate imports in June, meaning sustained disruption could delay deliveries to Northeast Asia by roughly a month, Morris said.
Despite the Damietta attack, analysts said markets have not yet priced in disruption to the Suez Canal itself.
Shipping companies are already reassessing security measures for vessels operating around Egypt’s Mediterranean ports near the Suez Canal, according to a maritime security source.
Former Suez Canal Authority board member Wael Kaddour said the attack does not necessarily indicate that the canal itself is under immediate threat, emphasizing that the waterway is heavily guarded and secured around the clock.
The incident comes as Iran has threatened to halt all Middle Eastern energy exports, arguing that no regional oil should flow while the United States blockades Iranian tankers. The Houthis have also declared a blockade on all Saudi shipping, potentially including vessels carrying crude from Yanbu to the Mediterranean.
Iran’s Araqchi Calls Egypt’s Security a Top Priority
Meanwhile, Iranian Foreign Minister Abbas Araqchi sought to reassure Egypt following the attack. In a post on X, he described Egypt as an “important friend and partner” in the Middle East and said the country’s security is “of paramount importance” to Iran.
Araqchi also warned of what he described as the need for continued vigilance against “Israeli plans and deceptive operations aimed at undermining regional peace.”
According to the Egyptian government, the fire that broke out aboard the two LNG tankers at Damietta was caused by a drone strike. Authorities have not identified those responsible.
Yemen’s Houthi movement denied any involvement, saying its operations target only the Saudi regime.
