Yemen Conflict Escalates, Threatening Global Oil Supplies
The conflict in Yemen has escalated, causing global oil markets to tremble. The Houthi rebels have taken control of nearly all of Yemen's Red Sea coastline and Bab al-Mandab Strait, a crucial chokepoint for 6% of the world's seaborne-traded oil.
On September 15, oil prices surged to $110 as Saudi Arabia temporarily shut down its East-West pipeline after a drone attack blamed on a pro-Iranian militia in Iraq. The US and Houthi leaders held talks in Oman that same day.
The conflict has left experts warning of catastrophic scenarios for Saudi Arabia, including a prolonged shutdown of the East-West pipeline or a Houthi attempt to block Bab al-Mandab Strait. Goldman Sachs predicts global oil prices could reach $120 if the Iran and Yemen conflicts continue.