Houthi Gains in Yemen Send Global Oil Prices Soaring
The Houthi rebels have made significant military gains in Yemen, taking control of the port city of Mokha and pushing out Saudi-backed forces along a key stretch of Red Sea coastline. The fighting has coincided with an exchange of fire in the Persian Gulf between the US and Iran, causing global oil prices to rise.
The price of Brent crude shot up to nearly $110 a barrel this week, according to Capital Economics. Gasoline prices in the US are up by 34% from last year at this time, averaging $4.28 a gallon now, while diesel is up by 61%. Saudi Arabia's oil exports have been severely impacted by the conflict, with the country exporting just 3.2 million barrels a day last month, its lowest level in more than a decade.
The Houthi attacks on shipping have forced Saudi Arabia to use a longer and costlier route through the Suez Canal to reach buyers in Asia. The renewed fighting in Yemen comes after the group fired missiles and drones at four regions of southwestern Saudi Arabia, sparking fires that halted operations on Tuesday. More than 70 people were wounded in the attacks.