How the Bab al-Mandab blockade threat helped push oil back above $100
Summary
The threat of a blockade at the Bab al-Mandab strait by Yemen’s Houthi militias has caused global oil prices to rise above $100 a barrel. This narrow sea route is important for Saudi oil exports, especially since the Strait of Hormuz remains largely closed due to conflict between the US and Iran.Key Facts
- The price of Brent crude oil rose more than 13% in a few days, exceeding $100 per barrel.
- Houthis, who control parts of Yemen near Bab al-Mandab, warned shipping companies not to use Saudi ports or face attacks.
- Bab al-Mandab is a key route carrying about 4.1 million barrels of oil daily, about 5% of the world’s total oil trade.
- Saudi Arabia rerouted around 75% of its oil exports through the Red Sea and Bab al-Mandab after the Strait of Hormuz was blocked.
- The breakdown of the US-Iran ceasefire and Houthi attacks have reduced shipping traffic through Hormuz and Bab al-Mandab.
- The conflict led many shipping companies to avoid Bab al-Mandab, disrupting global oil supply routes.
- A Houthi official threatened that controlling Bab al-Mandab could push oil prices to $200 a barrel.
- Saudi Arabia views the Houthi threats as retaliation after a ceasefire breach and continues to respond.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
