Houthi Gains in Yemen Send Oil Prices Soaring
The conflict in Yemen has escalated as Iran-backed Houthi fighters gained control of a key port city, Mokha. This move comes amid ongoing tensions between Saudi Arabia and the Houthis, with the latter targeting Saudi oil carriers around the Bab al-Mandeb waterway.
As a result, Brent crude prices shot up to nearly $110 a barrel, while gasoline prices in the US are up by 34% from last year at this time. The Houthi takeover of Mokha is just one of several recent attacks on Saudi oil facilities, which has forced Saudi Arabia to reroute its crude through the Suez Canal and around Africa.
According to data from maritime analytics firm Kpler, Saudi Arabia exported just 3.2 million barrels a day last month, its lowest level in over a decade. The US says the Houthis are another regional proxy of Iran, supported by weapons and training.