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  • Why Nvidia needs Korea as much as Korea needs Nvidia
    Why Nvidia needs Korea as much as Korea needs Nvidia SEOUL, July 27 (AJP) - When Jensen Huang toured Seoul last month, Nvidia's chief executive said he had found a full five-layer AI cake in South Korea. Over the weekend, he stayed true to that discovery, emerging as both the biggest customer and investor in that cake. Nvidia placed itself at the center of South Korea's all-out AI push as Huang headlined the government-hosted AI summit in San Francisco before joining President Lee Jae Myung and Korea's business leaders for a relaxed waterfront dinner over beer and fish and chips, replacing Seoul's trademark chimaek but preserving the easy camaraderie that has come to define Huang's relationship with Korea. At first glance, Korea's chip ecosystem was the centerpiece. Samsung Electronics and SK hynix dominate advanced memory, while the country combines world-class telecommunications, electronics manufacturing, automobiles, robotics and industrial production into one of the world's most complete AI supply chains. But beneath the celebratory mood lay an anxiety confronting the world's AI champion. Nvidia's growth rests on a simple equation: more data centers mean more graphics processing units sold, more high-bandwidth memory installed and more networking equipment deployed. That equation is increasingly running into a wall in the United States. The constraint is no longer chips or capital. It is electricity. Power has become the scarce resource in the AI race. Utility interconnection queues in major U.S. markets stretch for years, community opposition has slowed new projects, and transformers and other heavy electrical equipment remain in short supply. Even developers with financing and Nvidia GPUs in hand often cannot connect new facilities to the grid. Research by Sightline Climate estimates that 30 percent to 50 percent of large data-center projects expected globally this year could face delays because of power shortages, equipment bottlenecks and permitting hurdles. For Nvidia, every delayed data center represents GPUs that cannot be shipped, networking systems that cannot be installed and memory chips that remain unsold. A bottleneck in Virginia or Texas eventually shows up in demand forecasts in Santa Clara. Korea as Nvidia's second growth engine That is where South Korea enters—not as a beneficiary of Nvidia's expansion, but as an alternative engine of demand that America's grid cannot yet accommodate. President Lee Jae Myung has launched one of the world's most ambitious AI infrastructure drives, combining hyperscale AI data centers, sovereign AI models and industrial AI deployment under three national mega projects. The plan calls for roughly 18.4 gigawatts of AI data-center capacity by 2035. SK Group is expected to develop around 15 gigawatts, GS Group 2.4 gigawatts and Naver about 1 gigawatt, representing one of the largest coordinated AI infrastructure programs outside the United States. Layered on top is Seoul's sovereign AI initiative, encouraging Korean companies to build large language models optimized for the Korean language, domestic regulations and industrial applications. For Nvidia, those projects provide exactly what U.S. infrastructure constraints increasingly threaten: sustained demand. "South Korea has all the ingredients to become a global AI powerhouse—world-class networks and data centers, leadership in chip technology and vast industrial scale," Huang said. "Together with SK Telecom and SK hynix, we are building a new generation of AI factories that will power Korea's next wave of growth." Partnerships built for mutual gain The agreements announced during Lee's Silicon Valley visit illustrate why Nvidia's relationship with Korea extends well beyond supplier and customer. SK Group and Nvidia unveiled a strategic AI initiative valued at more than $500 billion. SK Telecom plans to build AI factories totaling up to two gigawatts using Nvidia's next-generation Vera Rubin computing platform while sourcing HBM4 memory from SK hynix. The first facility is expected to come online in 2027. The economics are compelling. Servers—primarily GPUs and memory—account for roughly 60 percent of the capital cost of a large AI data center. Every hyperscale AI factory therefore lifts Nvidia's processor sales while simultaneously expanding demand for SK hynix's advanced memory. "In the AI era, competitiveness depends not just on how effectively AI is utilized, but on how much intelligence we can produce," SK Group Chairman Chey Tae-won said. "We will help Korea evolve from an AI adopter into a global AI innovation hub." Hyundai Motor Group is pursuing another dimension of the partnership. Rather than simply buying chips, Hyundai plans to integrate Nvidia's Blackwell GPUs and Drive platform across autonomous vehicles, robotics and smart factories, turning Korea into a proving ground for physical AI. Naver, meanwhile, has paired Nvidia with global infrastructure investor Brookfield to expand its Sejong AI factory to 200 megawatts by 2028, supported by approximately 100,000 Vera Rubin GPUs. "Nvidia's planned strategic investment and our infrastructure supply agreement with Brookfield have propelled Naver's vision for the AI factory business into a robust execution phase," Naver founder and Chairman Lee Hae-jin said. "Leveraging our partnerships with global technology leaders, we will strengthen Korea's sovereign AI ecosystem and enhance the country's AI competitiveness." Together, the projects reveal Nvidia's broader strategy. Rather than relying overwhelmingly on U.S. hyperscalers, the company is cultivating national AI champions capable of building infrastructure at scale. Korea has become the most advanced example of that model. A golden era—if the lights stay on The week's grandest announcements came from conference stages, but its defining image came around a dinner table overlooking San Francisco Bay. Lee greeted Huang by joking that he had seen reports of the Nvidia chief enjoying chimaek during his Seoul visit and wished he had joined him. Huang laughed and replied that everyone in Korea seemed to love AI—from fried chicken restaurants to barbecue houses. He noted that Nvidia and Korea had worked together for more than 25 years, first through PC gaming and now through artificial intelligence. "From AI chips and physical AI to AI infrastructure, Korea has achieved remarkable results over the past year," Huang told Lee. "This is truly the beginning of Korea's golden era." Lee's response was brief. He hoped it was only the beginning. Whether that golden era arrives on schedule will depend on more than the chips Nvidia is eager to sell. Korea needs Nvidia's processors, software ecosystem and AI leadership to accelerate its ambitions. Nvidia, meanwhile, increasingly needs Korea's memory leadership, industrial manufacturing, coordinated investment and, above all, the electrical capacity to deploy the computing power that America's own grid is struggling to absorb. The relationship is no longer one-sided. Korea may have every layer of Huang's AI cake. Nvidia is helping bake it—but it also needs somewhere to serve it. 2026-07-27 13:57:40
  • U.S. and Iran Halt Attacks, Resume Under-the-Radar Negotiations
    U.S. and Iran Halt Attacks, Resume Under-the-Radar Negotiations The United States and Iran have both halted their attacks, bringing a temporary lull to hostilities after nearly two weeks of conflict. The two sides are seeking to resume negotiations through intermediaries, although no formal ceasefire has been agreed upon.According to CNN on the 26th, President Donald Trump ordered the cessation of airstrikes against Iran on the 24th. The U.S. military had conducted strikes on Iranian military facilities for 13 consecutive days from the 11th to the 23rd but has not launched any further attacks since then.In response to the U.S. halt in airstrikes, Iran has also ceased its retaliatory attacks targeting U.S. forces and allies in the Middle East. However, neither side has made an official announcement to completely end military actions.Iran has characterized the U.S. decision to stop airstrikes as a victory. Amir Akraminia, a spokesperson for the Iranian military, stated in an interview with state television that "the U.S. has failed to forcibly open the Strait of Hormuz or weaken and destroy Iran's defensive capabilities."He also suggested that the U.S. is feeling the burden of prolonged military operations. He referenced the Houthi movement in Yemen, which is supported by Iran, as having initiated a maritime blockade against Saudi Arabia.The U.S. views the halt in airstrikes as a step toward seeking a diplomatic resolution. U.S. Ambassador to the United Nations Mike Waltz appeared on NBC, stating, "The President is allowing some room for dialogue to occur," and noted that negotiations are taking place at all levels, from working groups to the highest ranks.Iran has also indicated that communication with the U.S. is ongoing through intermediaries. Esmail Baghaei, a spokesperson for the Iranian Foreign Ministry, told Austria's state broadcaster ORF that "both sides are exchanging messages, and the activities of the mediating countries are continuing."However, significant differences remain regarding the key issue that sparked the conflict: navigation through the Strait of Hormuz. The U.S. demands the free passage of commercial vessels, while Iran insists on maintaining control over the strait.Even after the cessation of airstrikes, shipping operations in the Strait of Hormuz have not returned to normal. According to shipping analytics firm Kepler, the number of cargo ships passing through the strait last weekend fell below ten per day. On the 25th, only three vessels passed through the strait while operating with their Automatic Identification Systems (AIS) turned off.* This article has been translated by AI. 2026-07-27 13:56:00
  • Jokuk Returns to Party Leadership as Head of Innovation Policy Institute
    Jokuk Returns to Party Leadership as Head of Innovation Policy Institute Jokuk, the former leader of the Jokuk Innovation Party, has returned to party duties as the head of the Innovation Policy Institute. This comes about two months after he stepped down from his leadership position following his defeat in the June 3 by-elections.On July 27, Jokuk stated, "I will support the activities of the new party leadership centered around Representative Shin Jang-sik and work on developing a vision and policies that will open the future of the party."He added, "Many citizens expect the Innovation Party to provide a vision and policies that can change the world. I will collaborate with academia, experts, and civil society to transform the party into a strong think tank that uncovers and connects progressive visions and values of the era."Meanwhile, the Innovation Party held a national convention on July 25, establishing a new leadership under Shin. Representatives Cha Gyu-geun and Hwang Hyun-seon were elected as new supreme council members, while Jeong Chun-saeng was appointed as secretary-general and Kim Seon-min as the chair of the policy committee.Additionally, the Innovation Party set up a National Situation Room for Prosecutorial Reform in the National Assembly's Rotunda Hall stairs, pressing for the passage of a bill to amend the Criminal Procedure Act. The Democratic Party plans to hold a plenary session this week to address the proposed amendments, which focus on separating investigation and prosecution.* This article has been translated by AI. 2026-07-27 13:56:00
  • Dongyang Life Reports 11.5% Increase in First Half Net Profit to 91.9 Billion Won
    Dongyang Life Reports 11.5% Increase in First Half Net Profit to 91.9 Billion Won Dongyang Life has continued to improve its performance in the first half of the year, driven by an increase in protection insurance sales.The company reported a net profit of 91.9 billion won for the first half of the year, an 11.5% increase compared to the same period last year, on July 27.In the second quarter, net profit reached 66.9 billion won, a significant rise of approximately 168% from 25 billion won in the first quarter. The growth was attributed to the expanded sales of newly launched long-term premium whole life insurance products, which contributed to improved profitability focused on protection insurance.Key operational indicators also showed improvement. The annualized premium equivalent (APE) for new contracts in the second quarter was 206.5 billion won, up 48.4% from 139.2 billion won in the first quarter. The cumulative APE for new contracts in the first half totaled 345.7 billion won.The insurance contract margin (CSM) for the second quarter was 148 billion won, a 56.7% increase from 94.5 billion won in the previous quarter. The cumulative CSM for new contracts in the first half was recorded at 242.5 billion won, reflecting the impact of a restructured product portfolio centered on long-term premium whole life insurance.Capital soundness indicators also improved. As of the first half, the preliminary K-ICS ratio was 205%, up 28 percentage points from 177% in the same period last year, reflecting an increase in available capital and a decrease in required capital.A Dongyang Life official stated, “We are building a stable channel portfolio and continuing operations based on profitability and risk management. We aim to balance profit and financial soundness to strengthen our foundation for medium- to long-term growth.”* This article has been translated by AI. 2026-07-27 13:52:00
  • Seegene Highlights Need for Combined HPV and STI Testing, Calls for Global Standards
    Seegene Highlights Need for Combined HPV and STI Testing, Calls for Global Standards Seegene has emphasized the necessity of comprehensive testing that simultaneously detects sexually transmitted infections (STIs) and human papillomavirus (HPV). The company argues that due to the prevalence of asymptomatic infections and the similarity of symptoms across pathogens, relying solely on tests for individual diseases is insufficient for accurately identifying genital infections.On July 27, the global molecular diagnostics company highlighted the clinical utility of its syndromic PCR-based reproductive tract infection (RTI) comprehensive test.The company has accumulated real clinical data through its 'Global Million Clinical Study (GMCS),' announced on July 8. Based on this data, Seegene aims to validate the clinical value of disease-specific tests and establish a scientific basis for new global testing standards.HPV is recognized as a major cause of cervical cancer. Particularly, high-risk genotypes, including HPV types 16 and 18, are closely linked to the development of cervical cancer, making it crucial to identify not just the presence of infection but also the specific genotypes detected. Consequently, screening and follow-up strategies may vary based on the genotype, according to the company.STIs can be caused by various pathogens, including chlamydia and gonorrhea, and present a range of symptoms such as abnormal discharge, painful urination, genital pain and itching, dyspareunia, lower abdominal pain, ulcers, vesicles, and warts. However, the similarity of symptoms across pathogens makes it difficult to pinpoint the cause based solely on symptoms, and the presence of asymptomatic infections increases the risk of unnoticed transmission.Using its real-time testing data analysis platform, STAgora, Seegene recently analyzed approximately 60,000 simultaneous HPV and STI test results generated over three and a half years. The analysis revealed that 82% of HPV-positive cases detected 28 types of HPV also had STI pathogens present, while 46% of STI-positive cases also confirmed the presence of HPV. Among comprehensive test positive cases that included both HPV and STIs, 71% showed concurrent detection.Seegene interprets these findings as evidence of the utility of STI co-testing in the HPV screening process. The company notes that this approach could be beneficial for identifying asymptomatic STIs, assessing co-infections in HPV-positive patients, and monitoring reproductive health during pregnancy preparation and infertility evaluations.Seegene stated, "Through GMCS, we plan to continuously secure clinical results for the HPV and STI comprehensive test and validate its clinical utility and applicability using STAgora-based statistics."* This article has been translated by AI. 2026-07-27 13:52:00
  • August Sees 14,342 New Apartment Move-Ins Nationwide, Boosted by Banpo Complex in Seoul
    August Sees 14,342 New Apartment Move-Ins Nationwide, Boosted by Banpo Complex in Seoul In August, a total of 14,342 apartments will be available for move-in across the country, a slight increase from the same month last year. The Banpo Raemian Trinion complex in Seocho District is expected to contribute significantly to the highest number of move-ins in Seoul this year.According to a report from Zigbang on July 27, the nationwide apartment move-in figure for August is projected at 14,342 units, marking a 3.4% increase from 13,867 units in the same month last year, and similar to the previous month’s total of 14,400 units.Regionally, the metropolitan area will account for 8,924 units, while local areas will see 5,418 units, with the metropolitan area representing approximately 62% of the total move-ins. Although the number of move-ins in the metropolitan area has slightly decreased from 9,172 units the previous month, Seoul is set to experience its highest monthly move-in total this year.In Seoul, six complexes will see a total of 3,540 units available for move-in. This includes 2,091 units at the Banpo Raemian Trinion in Banpo-dong, 577 units at the Magok District 17 complex in Gangseo District, 488 units at the Hillstate Mapo the First in Mapo District, 260 units at the Elif Mia Station Complex 1 and 2 in Gangbuk District, and 124 units at the Dongjak Boramae Station Precent in Dongjak District.Notably, the Banpo Raemian Trinion is expected to account for more than half of the total move-ins in Seoul, driving the increase in supply. However, analysts caution that the rise in move-ins in Seoul is largely influenced by this specific large complex, which may limit the interpretation of a broader trend in supply across the city.Additionally, the Magok District 17 complex in Gangseo is a land lease housing project that recorded an average competition rate of 125 to 1 during its initial application in March. Earlier, President Lee Jae-myung expressed support for the concept of land lease housing at a real estate forum on July 23, but he also pointed out issues regarding the price differences between these units and general sale housing after resale.In Gyeonggi Province, a total of 5,384 units will be available for move-in, with Pyeongtaek City leading with 2,230 units, followed by Suwon City with 2,178 units, Icheon City with 558 units, and Paju City with 418 units. In Pyeongtaek, the Brain City Daekwang Rozeviang Moaelga (1,700 units) and the Pyeongtaek Goduk International New Town A48 Block Yemi Ji (431 units) will be available, while in Suwon, the Maegyo Station Palusid (2,178 units) will begin move-ins.In local areas, a total of 5,418 units will be available, primarily in Chungnam and Gangwon provinces. By region, there will be 2,059 units in Chungnam, 1,668 units in Gangwon, 695 units in Gwangju, 602 units in Chungbuk, and 394 units in Ulsan.In Chungnam, the Tangjeong Prugio River Park (1,626 units) and Nonsan Prugio the First (433 units) will be available. In Gangwon, the Chuncheon Lake City I-Park (874 units) and Gangneung Ocean City I-Park (794 units) will be supplied. Additionally, in Gwangju, the We Park the Central (695 units), in Cheongju, Chungbuk, the Harrington Place Technopolis (602 units), and in Ulsan, the Okdong Gyeongnam Honorsville UBC (320 units) and Centum El Casa (74 units) will be available for move-in.Zigbang noted that while the overall move-in volume is similar to the previous month, regional disparities will likely lead to varied impacts on the market. In particular, the move-ins at the Banpo complex in Seoul may influence the nearby rental market and the flow of listings, warranting close observation of related market changes.Meanwhile, the market continues to monitor the government's ongoing tax reform initiatives. However, as specific reform plans have yet to be finalized, analysts suggest that a wait-and-see approach may persist until the final details are disclosed.* This article has been translated by AI. 2026-07-27 13:48:00
  • Chinese Memory Chip Firm CXMT Soars 500% on Market Debut: Will It Surpass Samsung and SK Hynix?
    Chinese Memory Chip Firm CXMT Soars 500% on Market Debut: Will It Surpass Samsung and SK Hynix? Chinese memory chip company Changxin Memory Technologies (CXMT) experienced a dramatic surge on its first day of trading. However, concerns about a potential bubble and the competitive landscape in the AI memory market have emerged among domestic online investors.On July 27, CXMT's shares skyrocketed by over 500% compared to its initial public offering price during trading on the Chinese stock market. This surge propelled its market capitalization to the top position on the Chinese exchange.As a leading DRAM semiconductor manufacturer in China, CXMT has grown with significant support from the Chinese government amid U.S. semiconductor regulations. The company is also pushing into the AI server memory and high-bandwidth memory (HBM) markets.Market analysts suggest that the surge may be linked to Apple's consideration of using Chinese-made memory in some of its products. Reports indicate that Apple is exploring the expansion of its use of Chinese memory, which has drawn strong opposition from U.S. memory manufacturer Micron.Despite these optimistic projections, there is a prevailing negative sentiment regarding the company's actual business competitiveness and valuation. Online commenters expressed skepticism, stating, "The price of CXMT shares is truly a bubble. They are neither cheap nor in high demand, and the quality is not impressive," and "The biggest boon for stocks is not performance but expectations. How will they manage if it rises so much? It seems overly inflated due to the Apple issue."Additionally, as foreign investors continue to sell off shares in the domestic market, speculation has arisen that foreign capital may be shifting towards Chinese semiconductor stocks.However, it remains uncertain whether CXMT's first-day surge will translate into long-term corporate value. The semiconductor industry notes that CXMT still lags behind Samsung Electronics, SK Hynix, and Micron in terms of global market share and technological capabilities, suggesting that the current stock price reflects significant growth expectations.Currently, the global DRAM market is dominated by three companies: Samsung Electronics, SK Hynix, and Micron, which together hold over 90% of the market share, with Samsung at approximately 40%, SK Hynix at around 35%, and Micron at about 20%. In contrast, CXMT's global market share is estimated to be in the single digits, positioning it as a potential fourth player.There is still a considerable technological gap. SK Hynix holds a near-monopoly in the HBM market, a key component for AI semiconductors, supplying HBM3E to global AI companies, including NVIDIA. While Samsung is considered a latecomer in the HBM sector, it maintains top-tier competitiveness in DRAM manufacturing technology and production capacity. Conversely, CXMT, despite rapid growth backed by substantial government support, struggles to catch up with Samsung and SK Hynix in advanced process technology, HBM mass production experience, and global customer trust. The U.S. export restrictions on semiconductor equipment also hinder its access to cutting-edge EUV technology, making it challenging to close the technological gap in the short term.Looking ahead, the outlook is divided between the domestic Chinese market and the global market. With the Chinese government strongly promoting semiconductor localization, CXMT is likely to steadily increase its market share within China. However, it faces significant challenges in the global AI memory market, which is currently led by major tech companies like NVIDIA, AMD, Microsoft, and Amazon, who rely on HBM supply chains dominated by SK Hynix and Samsung.The stock price is expected to reflect both these expectations and realities. While CXMT's shares surged over 500% on their debut, indicating high market expectations, there is a risk of high volatility if actual performance and technological capabilities do not support this valuation. Conversely, if government support and domestic market expansion continue, the company could maintain a high valuation. SK Hynix is expected to benefit the most in the long term if demand for AI memory continues to grow, but short-term profit-taking and valuation pressures are potential variables. The recovery of Samsung's HBM competitiveness will be a key factor for its future stock price.In summary, while CXMT has the potential for rapid growth in the Chinese market, industry assessments suggest it is not yet positioned to threaten Samsung Electronics and SK Hynix in the global market in the short term. However, ongoing investment from the Chinese government and advancements in AI memory technology could allow it to emerge as a new competitor in the global memory market in the long run.* This article has been translated by AI. 2026-07-27 13:48:00
  • Park Ji-sung Proposes Expanding KFA Election Committee to Over 10,000 Members
    Park Ji-sung Proposes Expanding KFA Election Committee to Over 10,000 Members The K-Football Innovation Committee is pushing to expand the Korean Football Association's election committee from the current 200 members to over 10,000.Park Ji-sung, co-chair of the K-Football Innovation Committee, announced this initiative during a briefing following the committee's fourth meeting at the National Museum of Modern and Contemporary Art in Jongno, Seoul, on July 27. The meeting addressed three key issues: reforming football governance, developing youth players, and ensuring the independence of the Strengthening Committee.The most notable proposal is the overhaul of the election system for the KFA president. Currently, the election process is indirect, with about 200 voters, including ex-officio delegates such as city and provincial association presidents and representatives from professional K-League clubs, as well as randomly selected players, coaches, and referees. Critics have pointed out that this limited voting pool fails to represent the over 100,000 registered players in the association.Regarding the expansion of the election committee, Park stated, "We are considering adjustments based on the Korean Sports Council's election committee reform plan to reflect the characteristics of the sport. We plan to include professional, amateur, university, and promotion-relegation criteria, which could lead to a recommended committee size of over 10,000, with a significant proportion being players and coaches."He added, "We will discuss the amendment to the Sports Council's member organization regulations, which will serve as the basis for this reform, and aim to complete the revision process by August."Earlier, the Sports Council held a special delegate meeting on July 16, where it approved a plan to expand its election committee from 2,244 to 92,194 members, nearly a 41-fold increase. This reform grants voting rights to executives, delegates, coaches, referees, and includes qualified players in the election committee.If the KFA election committee expands to over 10,000 members, changes to the voting method will likely be necessary. However, Park expressed caution regarding the specifics of implementing electronic voting due to the complexities involved. He remarked, "We need to consider various aspects, including budgetary issues, to determine the most practical approach moving forward."The meeting also placed significant emphasis on youth development and the Strengthening Committee's agenda. Park noted that discussions on youth development focused on innovating the player registration paradigm and the association's system, expanding facility infrastructure in collaboration with local governments, and increasing participation in international competitions.Regarding the Strengthening Committee, he mentioned, "We discussed ways to enhance professionalism and fairness in the coach selection process. Today was an opportunity to share various perspectives and problem awareness, and we will delve into more specific discussions at the next meeting."Previously, the Innovation Committee faced criticism for not transparently releasing meeting minutes, raising concerns that it might be repeating the KFA's history of opaque governance.In response to the criticism about not documenting the minutes, Park explained, "I thought it was not appropriate for various comments to be shared externally, and I wanted to show the committee reaching a consensus. Therefore, I opted to provide a briefing as the chair after the meeting. Necessary records will be kept in writing."* This article has been translated by AI. 2026-07-27 13:48:00
  • Man Arrested for Attempted Sexual Assault in Jeju Hotel Bathroom
    Man Arrested for Attempted Sexual Assault in Jeju Hotel Bathroom A man in his twenties was arrested for attempting to sexually assault a woman in a hotel bathroom in Jeju.On July 27, the Jeju West Police Station reported that they are investigating the man on charges of attempted rape.According to police, the suspect, identified as A, followed the victim, B, into an external bathroom of a hotel in Jeju City’s Yeondong around 4 p.m. the previous day, where he allegedly choked her and attempted to assault her.A was apprehended by police after a passerby heard B's screams and reported the incident. A and B are said to be strangers to each other.The police are looking into the details of the incident and plan to request an arrest warrant for the suspect.* This article has been translated by AI. 2026-07-27 13:48:00
  • Houthi Attacks Disrupt Saudi Oil Exports, Traffic Through Bab el-Mandeb Plummets
    Houthi Attacks Disrupt Saudi Oil Exports, Traffic Through Bab el-Mandeb Plummets The Houthi rebels in Yemen have intensified attacks targeting Saudi Arabia's oil exports, leading to a significant drop in vessel traffic through the Bab el-Mandeb Strait, a crucial gateway in the Red Sea.According to shipping analytics firm Kepler, only 11 cargo ships passed through the Bab el-Mandeb Strait on July 26, the lowest number in recent months. Among these, 7 were oil tankers.Since declaring a maritime blockade on July 20 aimed at Saudi oil exports, the Houthis have escalated threats against ships and energy facilities. They claimed to have attacked Saudi state oil company Aramco's facilities in Yanbu and Jizan on July 25, although the details and extent of the damage have not been independently verified.The Bab el-Mandeb Strait has been a key alternative route for Saudi Arabia to avoid disruptions in the Strait of Hormuz. The kingdom transports oil produced in its eastern fields to the Red Sea port of Yanbu via an east-west pipeline before exporting it to Asia through the Bab el-Mandeb Strait.However, as the risk of Houthi attacks increases, some oil tankers are opting to bypass the Bab el-Mandeb Strait. Vessels heading from Yanbu to Asia are now taking a longer route, passing through the Suez Canal in the northern Red Sea and rounding the Cape of Good Hope at the southern tip of Africa.According to ship tracking firm Vortexa, the volume of oil transported through the Suez Canal this month has reached its highest level in two and a half years. Additionally, oil flowing through the Sumed pipeline, which connects the Red Sea and the Mediterranean, has increased by 50% compared to previous deliveries.Longer shipping routes lead to higher costs for fuel and insurance. Gregory Brew, a senior analyst at Eurasia Group, noted, "Saudi Arabia can export oil, but it will take significantly longer and cost more to transport it to Asian markets," adding that this could exert additional upward pressure on international oil prices.Traffic through the Strait of Hormuz, which Saudi Arabia previously relied on, remains low. Kepler reported that fewer than 10 cargo ships passed through the Strait of Hormuz over the weekend, with only 3 vessels recorded as having operated without their Automatic Identification System (AIS) on July 25.* This article has been translated by AI. 2026-07-27 13:40:00