Houthis' Bab el-Mandeb Seizure Sends Oil Prices Soaring 10%
The recent conflict in Yemen has led to a significant surge in oil prices. The Houthis have seized control of territory along the Bab el-Mandeb Strait, a crucial waterway that connects the Red Sea to the Gulf of Aden.
This move allows pro-Iranian groups to block the movement of oil and gas through this route, potentially disrupting global energy supplies.
The price of November Brent crude futures has risen by 10% in just two days, reaching $108 per barrel. This increase is attributed to the restrictions on ship passage through the Strait of Hormuz, which was previously a major concern for oil exports.
Saudi Arabia has been reorienting its oil exports to the Red Sea route due to escalating tensions with the Houthis, but this move has not gone smoothly. The country's oil exports fell to a nine-year low in August, according to Bloomberg, Kpler, and Vortexa.