On Monday, Houthi militants announced an immediate maritime embargo against Saudi Arabia, intensifying the already strained oil supply situation exacerbated by Iran's recent attacks on tankers in the Strait of Hormuz. The Bab el-Mandeb Strait, a critical passage for commercial shipping connecting the Red Sea to the Gulf of Aden, is at risk of being closed, which would further disrupt oil exports.
The Houthis accused Saudi Arabia of conducting an 'aggressive siege' against them, following claims that Saudi forces bombed Sanaa International Airport. In response to these tensions, Saudi Arabia has rerouted millions of barrels of oil per day through a pipeline to a Red Sea export terminal, which has been vital for stabilizing global oil markets during the ongoing U.S.-Iran conflict.
Although Brent crude oil prices initially surged nearly 4% to over $90 per barrel due to escalating violence, they later stabilized after Iran expressed willingness to negotiate with the U.S.
The situation remains precarious, with tanker traffic through Hormuz declining amid military confrontations, and the U.S. maintaining that the strait is open under military protection despite the heightened risks