The Bab al-Mandeb Strait, a lifeline for the global economy, is in jeopardy
The shutdown put 7 million barrels a day of capacity offline as Brent crude rose more than 8% for the week, analysts said.
- In the past 48 hours, Yemen's Iran-backed Houthi rebels captured the port city of Mocha and strategic Perim Island, tightening their grip on the Bab al-Mandeb strait.
- Saudi Arabia previously exported millions of barrels daily via the Bab al-Mandeb from Yanbu, but flows collapsed to about 400,000 barrels per day in August owing to persistent Houthi threats.
- Brent crude and WTI rose more than 7% on Thursday to hit $108 and $103 a barrel respectively, while U.S. diesel prices topped $6 a gallon on Friday for the first time, according to AAA data.
- Xeneta chief analyst Peter Sand estimates vessel transits through the strait have fallen between 60% and 70%, forcing many oil cargoes to take circuitous routes around Africa adding a month to transit times.
- Rising energy costs and sustained disruptions are driving broader inflation, Kpler senior crude analyst Johannes Rauball noted, raising the specter of interest rate hikes that would increase borrowing costs for consumers.
24 Articles
24 Articles
After losing control of the Bab El-Mandeb Strait and suspending oil shipments to the Red Sea, Saudi Arabia virtually disappears from the oil market. The risks of a major energy crisis are real.
Neither Europe nor the United States can afford to see the Bab el-Mandeb Strait closed, says the director of the Finnish Middle East Institute.
In a few days' flash offensive, the Houthis took control of crucial islands in the Bab al-Mandeb Strait. This strategic route represents a major asset for these pro-Iranian Yemeni rebels. If they ensure that freedom of navigation will remain guaranteed, the experts are already fearful of repercussions for the world economy. - The Houthis are extending their grip on the Bab al-Mandeb Strait, the coup de force that worries the world trade (Interna…
Saudi Arabia announced it was temporarily shutting down the strategic East-West pipeline following drone attacks, while Houthi rebels in Yemen seized a strategic island in the southern Red Sea. These developments have caused unease in global oil markets.
While the Huthis rebels in Yemen have just taken control of the Bab al-Mandeb Strait, which is crucial for world trade, "Time" has gathered the rare testimony of fighters who tell of the precariousness, misery and terror in which the military campaign plunged them "I swear to God, everyone is exhausted. The soldiers have an empty stomach. We are starving!" details discreetly from his smartphone Abdallah*, Houthi soldier mobilized on Marib's east…
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