Houthi Attacks Threaten Global Energy Supplies as Gas Prices Soar
The Houthi rebels in Yemen have escalated their military campaign against Saudi Arabia, attacking the country's oil facilities and threatening to further disrupt global energy supplies.
The recent strikes on Saudi Aramco's Abqaiq oil processing facility in eastern Saudi Arabia are a new development in the ongoing conflict between the Houthi rebels and Saudi Arabia. The attacks compound the strain already imposed by previous Houthi strikes on shipping in the Red Sea, including Saudi oil tankers.
According to maritime-law expert Ian Ralby, 'The Houthi threat is extremely credible,' as evidenced by the fact that Red Sea shipping has not returned to pre-November 19, 2023 levels. The Suez Canal, one of the world's most active trade routes, is directly connected to the Red Sea and plays a crucial role in global maritime trade.
The Houthi attacks could further drive up gas prices, which are already high due to the U.S.-Iran conflict. As of July 23, Brent crude had jumped 7% to $100.69 per barrel, while the national average price for regular gasoline in the United States climbed more than 37% between February and July.