Supertanker Olympic Luck Navigates Suez Canal as Red Sea Tensions Persist

By Weilun Soon

Jul 27, 2026 (Bloomberg) –An Asia-bound supertanker carrying Saudi oil has exited the Red Sea via the longer Suez Canal route while other vessels continue to risk the Bab el-Mandeb Strait, as Houthi threats heighten uncertainty in the region.

The very large crude carrier Olympic Luck transited the Suez Canal partially laden with Saudi crude into the Mediterranean Sea late Sunday, according to data from market intelligence firm Kpler. Shipping fixtures seen by Bloomberg indicate the vessel, which is Greek owned, is now heading to an unspecified destination in Asia after switching from Europe.

Olympic Luck is likely the first supertanker with Saudi crude to take a longer and costlier route around Africa to reach Asia, after Iran-backed Houthi rebels declared a blockade in the Red Sea and attacked vessels last week. Still, ships carrying oil from the kingdom and operated by nations friendly with Iran, such as China and Pakistan, have continued to transit Bab el-Mandeb.

It's unclear why Olympic Luck has committed to the longer route. Reasons could include its western ownership or a more conservative Asian buyer.

A VLCC, which has the capacity to carry 2 million barrels of crude, is unable to transit the Suez Canal fully laden because the vessel sits too deep in the water. The supertanker is required to offload about half of its cargo at Ain Sukhna in the Red Sea, which is then piped north to Sidi Kerir in northern Egypt where the ship can reload before resuming its journey.

Another Asia-bound supertanker looks set to follow Olympic Luck through Suez. The VLCC DHT Gazelle began signaling from within the Red Sea on Sunday and is currently idling at the entrance of the canal, partially laden with crude from the Saudi port of Yanbu, ship-tracking data show. Fixtures suggest that the vessel is heading toward an oil refinery in the Philippines.

Ship-tracking data show the Marshall Islands-flagged DHT Gazelle previously broadcast from the Arabian Sea on July 17, suggesting the vessel had crossed Bab el-Mandeb dark. The tanker likely loaded at Yanbu late last week, before re-appearing near Suez on Sunday, according to Kpler.

The Houthis have opened up another front in the Middle East conflict, which has snarled traffic through the Strait of Hormuz. Traffic through that waterway was sparse on Monday, and the market is watching for a pickup in activity after the US and Iran paused hostilities following a recent flare-up.

Eight commodity vessels — mostly smaller products tankers and bulk carriers — crossed on Sunday, according to Kpler. At least two ships carrying naphtha left the Persian Gulf over the weekend with their transponders off, likely bringing some relief to Asian importers that turn the fuel into chemical products.

In the Red Sea, the Lahore, a Pakistan-flagged Aframax tanker, sailed into the Gulf of Aden late Sunday after partially loading from Yanbu last week. Another Pakistani-flagged Aframax, the Karachi, is also sailing, half full, toward the chokepoint after loading from the same port.

Chinese tankers with Saudi crude have openly transited Bab el-Mandeb, along with at least one Greek vessel that went through with its transponder off, but traffic has slowed. On Sunday, only 14 commodity vessels crossed the corridor in either direction, marking the lowest daily tally this year, Kpler data show. The figures may be revised as more information becomes available.