Houthi Threats on Bab el-Mandeb Could Disrupt Global Oil Supply

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AI Summary
The Houthi rebels in Yemen have announced a blockade of the Bab el-Mandeb Strait, a crucial maritime route for oil transport. Although they have not yet enforced this blockade, the mere threat has caused some ships to reconsider their routes, potentially impacting oil supply from Saudi Arabia to Europe and Asia. Oil prices have already surged by over $20 per barrel this month, surpassing $95 for the first time since June. A complete blockade could lead to further price increases and disrupt the global oil market significantly, as around 2.5 to 3.5 million barrels of Saudi oil transit daily through this strait. The situation remains tense, with U.S. military intervention being a possibility if the blockade escalates.
Key Details: • Bab el-Mandeb is only 22 kilometers wide, making it a critical passage for oil. • Oil prices have risen over $20 per barrel this month, now exceeding $95. • A complete blockade could push oil prices above $100 per barrel. • Saudi Arabia currently sends 2.5 to 3.5 million barrels daily through Bab el-Mandeb. • U.S. military intervention may occur if the Houthi threats escalate.