Houthi Attacks on Saudi Facilities Disrupt Global Energy Markets

Tensions in the Middle East continue to disrupt global energy markets as attacks on Saudi oil facilities by Yemeni Houthi forces have led to a significant drop in traffic through the Bab el-Mandeb strait. According to shipping data from Kpler, only eleven vessels passed through this critical junction on Sunday, the lowest number in months.

The actions of the Tehran-aligned Houthis appear to be a strategy to blockade Saudi exports, adding tension to already strained US-Iranian relations. This development has driven up physical crude cargo prices across the Middle East, Europe, and Africa to recent highs.

Interestingly, passage through the Strait of Hormuz remained low, with less than ten commodity vessels transiting over the weekend, despite a ceasefire between the US and Iran. This underscores the delicate balance of power and the consequential impacts on global energy markets.