Houthis Test Indo-Mediterranean's Energy Resilience

The recent Houthi attack on two Saudi oil tankers has exposed the fragility of the Indo-Mediterranean's energy resilience. By targeting alternative routes built to reduce dependence on the Strait of Hormuz, the Houthis have doubled the maritime crisis across the region.

Markets immediately responded to the attacks by pricing in the possibility that both Hormuz and Bab el-Mandeb could remain under simultaneous pressure. As a result, Brent crude prices climbed above $99 a barrel for the first time since late May.

The implications of this development extend beyond oil prices, with routing vessels around the Cape of Good Hope becoming one of the few credible options for maintaining Europe-Asia connectivity. This challenges the assumption that maritime disruption in the Middle East could be managed through diversification, which has underpinned regional energy planning.