Houthis Seize Control of Key Shipping Route, Raising Oil Export Risks

The recent developments in Yemen have raised alarm bells for oil markets. The Iran-backed Houthi forces have made significant gains, capturing strategic areas near the Bab el-Mandeb Strait, a key shipping route.

The strait is crucial for global oil supplies, with around 5% of crude oil and petroleum product volumes passing through it, or approximately 4.1 billion barrels per year.

Saudi Arabia's East-West pipeline, which carries oil from eastern to western Saudi Arabia, has been suspended due to drone attacks on pumping stations near the pipeline.