Houthi Gains in Yemen Threaten Global Oil Supply

Houthi rebels have made significant gains in Yemen's ongoing conflict, capturing key ports and strategic islands along the Red Sea. This development threatens Saudi Arabia's ability to export oil through the region, with traders warning that a shutdown of the East-West pipeline could result in the loss of 4% of global oil supply.

The Houthi rebels have been attacking Saudi targets, including an oil depot near the city of Abha. The attacks have caused significant damage and disruptions to oil exports, with Brent crude prices surging above $100 per barrel this week.

Saudi Arabia has shut down its East-West pipeline as a precautionary measure after the latest attack. The pipeline is critical for Saudi oil exports, and a prolonged shutdown could have far-reaching consequences for global energy markets.

India, which relies heavily on imported oil, is particularly vulnerable to price increases. With Brent crude prices already above $100 per barrel, a further rise could exacerbate inflationary pressures and put pressure on the rupee.