Houthi Blockade Threatens Saudi Oil Exports, Sends Brent Crude Soaring

Global oil markets are bracing for a potential price surge as Iran-backed Houthi forces threaten to choke off the Red Sea, a crucial alternative route for Saudi crude exports. Brent crude futures have already broken above $100 per barrel for the first time in two months, and analysts warn that a prolonged dual-chokepoint disruption could send prices toward $120.

The Houthi militia declared a naval blockade on Saudi Arabia early this week and followed through by attacking two Saudi oil tankers in the Bab el-Mandeb strait. This assault directly threatens the kingdom's Plan B for global exports, which relies on the massive East-West pipeline that pumps crude from eastern fields to the Red Sea port of Yanbu.

Analysts at JPMorgan Chase estimate that if the conflict persists for just one month, Brent could average around $94 per barrel. However, with each additional month of supply disruption, the monthly average price could climb another $7 to $8 as inventories are drawn down at an accelerating pace.