Houthi Rebels Seize Critical Oil Route, Raising Fears of Global Supply Crunch
A recent escalation in the Saudi-Houthi conflict has raised fears that global oil supplies could be choked off, with crude prices above $100 a barrel. The Iran-backed Houthi rebels have effectively taken control of the Bab el-Mandeb Strait, which Saudi Arabia had been using as an alternative oil export route while the Strait of Hormuz remains in a US-Iran standoff.
Smoke and flames erupted near Riyadh's main airport after Saudi authorities issued their first air-raid alert in the capital since the latest escalation with Houthi rebels. The Houthis accused the Saudis on Friday of launching 26 air attacks against them in a 24-hour period.
Saudi Arabia's state oil company, Aramco, has told European customers they won't get crude oil next month following attacks on the country's East-West pipeline that it blames on the Houthis. Meanwhile, US Central Command commander Admiral Brad Cooper posted a video saying American forces have helped push more than one billion barrels of crude oil through the Strait of Hormuz in recent months.