Houthis' Red Sea Grab Sparks Oil Price Fears
The conflict in Yemen is causing a ripple effect on global oil flows and contributing to rising gas prices in the US. The Houthis, a Shia movement backed by Iran, have taken control of all of Yemen's Red Sea coastline, including the port city of Mokha. This has raised concerns about the security of shipping lanes through the Bab al-Mandeb Strait.
After Iran blocked traffic through the Strait of Hormuz, Saudi Arabia redirected its oil production to terminals on the Red Sea. However, with the Houthis now in control, there is a new chokepoint for global energy markets.
The price of Brent crude has risen by $7 per barrel to over $108, while diesel prices have set an all-time record of $6 per gallon in the US. The conflict and disruptions to oil exports could push prices even higher, affecting American drivers at the pump as well as consumer goods that rely on trucking for logistics.