China reaches deal with Houthis to protect its tankers in Red Sea, Reuters reports

China reaches deal with Houthis

China held direct talks with the Houthi movement in Yemen to secure safe passage for its tankers through the Bab el-Mandeb Strait without being attacked, six sources familiar with the matter told Reuters.

The Houthis announced their blockade on July 20, opening a new front against the United States and its allies in the conflict with Iran. They expanded attacks on tankers carrying energy supplies and other goods to markets outside the Middle East.

According to the sources, including a senior Iranian official, Beijing directly asked the Houthis to guarantee safe passage for Chinese tankers.

China was one of the first countries to contact the Houthis directly about transit through the Bab el-Mandeb Strait, the sources said, speaking on condition of anonymity because of the sensitivity of the issue.

Beijing seeks to protect oil imports

China is trying to maintain oil shipments from Saudi Arabia's Red Sea export terminals, mainly Yanbu, to help offset supply shortages caused by Iran's closure of the Strait of Hormuz.

According to Kpler analysis and vessel-tracking data from LSEG and MarineTraffic, at least four tankers loaded crude oil at Saudi ports for delivery to China. The vessels passed through the Bab el-Mandeb Strait after the Houthi restrictions were imposed.

Chinese officials reviewed each vessel individually with the Houthis, and both sides informed Iran about the arrangements, two regional officials briefed by Tehran told Reuters.

The Houthis have maintained good relations with China. Reuters sources close to the group said the two sides had previously coordinated closely, particularly regarding Saudi oil shipments to China.

Bab el-Mandeb blockade

The Houthis told international shipping companies in an email that vessels could be attacked if they loaded or unloaded cargo at Saudi Arabian ports.

Several tankers have already changed course because of security concerns, two sources involved in Chinese trade said.

Last week, the Houthis said they had carried out missile and drone attacks on two Saudi oil tankers, Encelia and Layla. Maritime security sources confirmed that Encelia was hit, although Reuters was unable to independently verify the reported attack on Layla.

A voyage from Yanbu to Asia through the Bab el-Mandeb Strait normally takes about 16 days. If a ship instead sails north through the Suez Canal and then around Africa, the journey takes about 50 days.

Earlier, Chinese President Xi Jinping told US President Donald Trump that China would not supply or sell weapons to Iran under any circumstances. The statement also applied to Chinese companies.

On July 20, the Iran-backed Houthi movement announced a naval blockade of Saudi Arabia and warned that it was prepared to further escalate the conflict.