Middle East Shipping Disruptions Push Oil Prices Above $100
Disruptions in Middle Eastern shipping have pushed global oil prices above $100 per barrel. The Strait of Hormuz, a key maritime chokepoint, has seen Iranian military actions and US-Israeli strikes since February 28, 2026, causing ocean shipping volumes to plummet from 1.97 million tons to 22.8 thousand tons.
The Houthi forces in Yemen escalated the crisis on September 11, 2026, by seizing Perim Island and effectively blocking the Bab el-Mandeb Strait. This has led to a dual maritime blockade that threatens international commerce with increased transit times, shipping freight charges, and insurance costs across global supply chains.
Energy analysts emphasized that the closure of both maritime corridors leaves commercial shipping operators with few operational workarounds to export crude oil from the region. Rebecca Babin, a senior equity trader for CIBC Private Wealth, said, 'The Strait of Hormuz was already an unprecedented supply disruption, but prices remained remarkably resilient because the market found workarounds... Houthi escalation this week now puts that relief valve at risk.'