Yemen Conflict Sends Oil Prices Soaring Amid Regional Tensions
The ongoing conflict in Yemen has flared up in recent weeks, posing significant risks to global oil markets. The Houthi rebels have taken control of nearly all of Yemen's Red Sea coastline, including the Bab al-Mandab Strait, a crucial chokepoint for international trade.
Additionally, the Houthis have intensified attacks on energy facilities in Saudi Arabia, which has forced Riyadh to temporarily shut down its critical East-West pipeline. This disruption has contributed to a surge in oil prices, reaching $110 on September 15.
Experts warn that a prolonged shutdown of the pipeline or a Houthi attempt to block the Bab al-Mandab Strait could send shockwaves around the world. The Strait accounts for about 6 percent of the world's seaborne-traded oil.
Gregory Brew, an oil expert and senior analyst at Eurasia Group, noted that 'it continues to be a dynamic of two conflicts: the Saudi-Houthi conflict and the US-Iran conflict, both of which are putting pressure on international oil markets.'
American investment bank Goldman Sachs has warned that global oil prices could reach $120 a barrel if the Iran and Yemen conflicts continue.