Houthi Advances Threaten Global Oil Supplies Amid Iran Conflict
The conflict in Iran has caused a ripple effect across the globe's energy market. In Yemen, Houthi forces have secured control of the Red Sea coast after an 18-hour offensive, prompting praise from senior Iranian officials. The group also attacked Saudi Arabia's east-west oil pipeline, causing damage and disruption to global oil supplies.
The International Energy Agency forecasts a decline in global oil demand this year by 2.5 million barrels per day, with some recovery expected next year. This comes as the consulting firm S&P Global Energy projects that Middle Eastern crude production will not return to prewar levels by the end of 2027, and exports are expected to remain depressed.
A new oil slick in the Strait of Hormuz has doubled in size within a day, with environmental group Greenpeace suspecting it may have originated from a tanker recently attacked by the United States. Meanwhile, Americans have spent an estimated $102 billion more on gasoline and diesel due to the conflict.