Houthi Blockade Threatens Global Trade and Saudi Oil Exports

The Red Sea is another critical maritime chokepoint in the world, rivaling the Strait of Hormuz in terms of global trade significance. Approximately 12% to 15% of global maritime trade worth over $1 trillion transits through this waterway every year.

Recently, the Iran-backed Houthi rebels announced their intention to impose a complete naval blockade on Saudi Arabia. The declaration comes after they banned all Israeli and Israeli-linked ships from transiting the Red Sea last month, calling them 'legitimate military targets.'

The Bab el-Mandeb Strait at the south end of the Red Sea is crucial for Saudi Arabia's oil exports to the global market.