An Iranian-supported faction has issued a threat to enforce a naval blockade against a US partner as tensions escalate in the Middle East.
The rebel group known as Houthis in Yemen has announced their intention to shut down the Bab el-Mandeb Strait, a crucial Saudi maritime passage connecting the Red Sea, in response to the closure of the Strait of Hormuz due to the US-Iran conflict.
Iran shut down the Strait of Hormuz early in the conflict following joint air strikes by the US and Israel on key Iranian targets. This closure disrupted the transportation of 20% of the world’s traded oil, causing significant turmoil in global oil markets.
The armed forces of the Houthis declared a maritime embargo against Saudi Arabia, citing retaliation for what they perceive as an unjust siege imposed by the Saudis on Yemen.
Saudi Arabia and the internationally recognized Yemeni government have condemned the Houthi naval blockade announcement, with Saudi Arabia accusing the Houthis of besieging the Yemeni population.
The Saudi-led coalition in Yemen has pledged to safeguard shipping routes and respond forcefully to the Houthis’ threats, labeling them as a violation of international law and akin to acts of piracy.
If the Bab el-Mandeb Strait is completely closed, it could reduce global oil supply by 7%, impacting Saudi oil exports and potentially escalating the conflict between the US and Iran, leading to a significant decrease in oil output from the Gulf region.
Following the Houthi statement, oil prices initially rose but later stabilized as traders remained hopeful for a diplomatic resolution to the escalating tensions.
