The Iran war has taken a new turn, with the Houthis’ blockade of the Bab al-Mandeb strait threatening to disrupt global oil supply. This strategic waterway is a crucial bypass of the Strait of Hormuz, through which a significant portion of the world’s oil is transported.
Impact on Oil Prices
The blockade has already led to a surge in oil prices, with a $20 increase per barrel this month. If the blockade is enforced, it could lead to a further rise in prices, potentially exceeding $100 per barrel.
The Bab al-Mandeb strait is a vital waterway, with approximately 6.2 million barrels of oil passing through it daily. The Houthis’ threat to block the strait has already led to some ships abandoning their plans to exit the Red Sea, with five tankers making U-turns after the announcement.
US Military Intervention
The US military may become involved if the Houthis take more serious action, according to President Donald Trump. The US Navy is already busy blockading Iranian ports and struggling to persuade shipping companies to transit the Strait of Hormuz.
The situation is complex, with the US military facing a new front in the Iran war. The blockade of the Bab al-Mandeb strait could erode the US ability to help ships out of the Strait of Hormuz, leading to a significant disruption in global oil supply.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
