Yemen Conflict Threatens Global Oil Supplies Amid Escalating Tensions

The escalating conflict in Yemen has raised concerns about the global oil market's stability. Houthi forces have seized control of almost the entire Red Sea coast and strategic territories near the Bab el-Mandeb Strait, a key maritime route for oil trade.

About 6% of global oil volumes transported by sea pass through this strait, making it a crucial chokepoint for energy supplies. If the conflict continues or worsens, it could significantly affect global energy markets.

Saudi Arabia's East-West oil pipeline has been temporarily halted after a drone attack blamed on a pro-Iranian group in Iraq. This route is an important alternative to exports through the Strait of Hormuz.