Houthi Takeover Threatens Global Oil Supplies
The port of Mocha in Yemen, with its 16,000 inhabitants, has historically been known for its coffee trade. However, recently, it's gained importance as a strategic location due to its proximity to the Bab el-Mandeb strait, through which 7% of the world's oil passes.
The Houthi militias, allies of Iran, have taken control of Mocha, putting them just 50 kilometers from the Bab el-Mandeb strait. This has raised concerns about the security of global oil supplies.
Saudi Arabia, which relies on the Bab el-Mandeb strait for most of its crude oil exports, saw a significant drop in production by 23.5% in August to its lowest level since August 1990. The reason was the ongoing war and attacks from Iran's proxies in the Persian Gulf and Eastern Province.
The capture of Mocha and reduced Saudi Arabian oil production have pushed Brent crude oil prices to their highest level since May 21, reaching $107 per barrel. West Texas Intermediate (WTI) also reached $102 per barrel.