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Iran threatens Bab al-Mandeb closure: How would that affect world trade?

Iran threatens Bab al-Mandeb closure: How would that affect world trade?

Summary

An adviser to Iran's Supreme Leader threatened the closure of the Bab al-Mandeb Strait, a key global shipping route. This follows U.S. President Donald Trump's threats to Iran regarding the Strait of Hormuz. Closure of Bab al-Mandeb could seriously impact global oil trade and energy supply.

Key Facts

  • Bab al-Mandeb connects the Red Sea to the Gulf of Aden.
  • It is an important route for global oil trade, carrying about 5% of the world's crude oil and petroleum products.
  • An Iranian official suggested it could be closed like the Strait of Hormuz.
  • Iran's ally, the Houthis, effectively control the Bab al-Mandeb area.
  • President Trump has threatened military action against Iran if it doesn’t reopen the Strait of Hormuz.
  • Bab al-Mandeb is crucial for oil exports from countries like Saudi Arabia to Asia and Europe.
  • If both Bab al-Mandeb and the Strait of Hormuz were closed, it would impact 25% of the world’s oil and gas supply.
  • Approximately 10% of global trade passes through Bab al-Mandeb, including goods from Asia to Europe.

Source Information