Houthi Rebels Rule Out Red Sea Blockade, Oil Prices Plummet

The Houthi rebels have clarified their stance on blocking ship traffic through the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden. According to Houthi spokesman Mohammed Abdulsalam, there will be no full closure of the strait.

This statement comes after the Houthis declared an end to a four-year ceasefire on September 20th and accused Saudi Arabia of bombing Yemen's capital airport in Sanaa.

As a retaliatory measure, the Houthis had threatened to impose a full maritime blockade against Saudi Arabia. The strait is a critical shipping lane for crude oil exports from Saudi Arabia, which has been relying on this route since the Strait of Hormuz was blocked following the US-Iran conflict.

However, with the Houthi's clarification that they will only impose a 'limited maritime blockade' affecting Saudi Arabia, international oil prices plummeted. Brent crude futures fell 4.83% to $95.83 per barrel on London's ICE Futures Exchange, while WTI crude futures dropped 4.25% to $88.27 per barrel.