Commodities
Houthi Attacks Spark Oil Price Surge, Tipping Balance in US-Iran Conflict
The conflict between the US and Iran has become a contest in enduring economic pain. Both sides appear confident that they can outlast each other, but a recent development could tip the balance in favor of Iran.
The Houthi regime in Yemen has been attacking Saudi ships in the Red Sea, disrupting oil exports and causing Brent crude oil futures contracts to surge over $100 per barrel.
This predicament will persist for Saudi Arabia as long as the Houthis continue their attacks. The Saudis could send tankers north through the Mediterranean Sea, but this would be the wrong direction to reach most of their customers in Asia.