Houthis Advance on Strategic Oil Route, Send Crude Prices Soaring
Houthi forces have advanced on the strategic Bab al-Mandeb Strait, capturing key islands and threatening to disrupt global oil supplies. The group's capture of Mocha port has put pressure on the Saudi oil route through Yanbu, which has already been rerouted due to Iran's closure of Hormuz.
The Red Sea strait is a vital shipping lane, carrying 6.2 million barrels of oil and refined products per day. The Houthi attacks made these waters unsafe for shipping in 2024, leading to a significant decline in Suez Canal revenue, with Egypt losing $7 billion that year.
The capture of Perim Island allows the Houthis to monitor and potentially mine the waterway, further raising concerns about global oil supplies. Brent crude prices soared to $108 on Thursday, while WTI surpassed $103, reflecting the escalating tensions in the region.