Bab al-Mandeb Strait Crisis Sparks Oil Price Surge
The Bab al-Mandeb Strait is a critical waterway connecting the Red Sea to the Gulf of Aden, and it has become increasingly important since the US-Iran war effectively shut down the nearby Strait of Hormuz.
Yemen's Iran-backed Houthi rebels have threatened shipping in the strait for weeks, attempting to open a new front in the war between Tehran and Washington.
The Houthis have dramatically tightened their grip on the shipping route, capturing both the port city of Mocha and Perim Island in the middle of the maritime chokepoint in the past 48 hours.
Richard Bronze, co-founder of Energy Aspects, said 'The Bab al-Mandeb had been a lifeline. Losing that lifeline has been a wake-up call for the oil market of how unsustainable the situation now is.'