Houthi Attacks on Saudi Ships Threaten Global Oil Supply Chains

The recent attacks by Houthi forces on Saudi Arabian ships in the Red Sea are causing concern about the stability of global oil supply chains. The Red Sea has been serving as a backup shipping route after disruptions in the Strait of Hormuz, which carries 20% of global energy needs. However, with these new attacks, this plan B is now under threat.

The Houthi attacks on commercial ships in the Red Sea have disrupted trade before, and it's not clear how long it will take for shipping operations to recover. In June, about 7.4 million barrels a day of crude oil were transported via the Red Sea and Bab el-Mandeb Strait, which is around 7% of global energy demand.

As a result of these disruptions, several Asian countries including China, Japan, South Korea, and India could have their oil imports disrupted again. This would not only impact these countries but also affect other sectors that rely on refined oil from these countries, such as Australia.