The Iran war has opened a new front, with the Houthis threatening to block the Bab al-Mandeb strait, a crucial oil supply route. The strait, which is about 14 miles wide at its narrowest point between Saudi Arabia and Djibouti, is a significant passage for oil tankers, with around 6.2 million barrels of oil passing through it every day.
Impact on Oil Prices
The threat of a blockade has already led to a surge in oil prices, with prices rising by $20 a barrel this month. If the Houthis are able to enforce the blockade, it could lead to a significant disruption in the global oil supply, with prices potentially rising by another $5 to $10 a barrel.
The Bab al-Mandeb strait is not as crucial as the Strait of Hormuz, which is the main passage for oil tankers in the region. However, it is still an important route, with around 6.2 million barrels of oil passing through it every day. The strait is also a key route for Saudi Arabia’s oil exports, with the country shipping around 230,000 barrels of diesel through the Suez Canal from refineries close to Yemen.
US Military Involvement
The US military may become involved if the Houthis take more serious action, with President Donald Trump stating that the US will take care of the situation if necessary. The US Navy is already busy blockading Iranian ports and is struggling to persuade shipping companies to transit the Strait of Hormuz.
Original reporting: KTVZ (Central Oregon) — read the source article.
