Houthi Advances Send Oil Prices Soaring Amid Yemen Conflict
The Houthi military's recent gains in Yemen have sent oil prices soaring. Brent crude hit nearly $110 a barrel, up from previous levels, as tensions rise between Saudi-backed forces and Iran-backed Houthis.
The fighting has caused disruptions to Saudi Arabia's oil exports, with the country shipping just 3.2 million barrels per day last month, its lowest level in over a decade. This is despite the kingdom's efforts to re-route crude through an east-west pipeline leading to the Red Sea as a fallback measure.
With Saudi Arabia's exports curtailed by Houthi attacks in the Bab al-Mandeb waterway and other Gulf Arab producers struggling to get oil out, countries around the world are tapping into emergency oil reserves. This is pushing up prices, with gasoline in the US averaging $4.28 a gallon, up 34% from last year at this time.