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Houthis are the world's biggest new threat to global oil supply
New York Post • • world
Key Points:
- The Iran-backed Houthi rebels have become the biggest threat to the global oil supply after seizing control of the Bab al-Mandeb Strait and allegedly attacking Saudi Arabia’s East-West oil pipeline, causing significant disruption.
- This disruption has raised oil prices, with a barrel reaching $108, as Saudi Arabia, the world’s second-largest crude supplier, faces challenges in exporting oil through its main Red Sea route.
- Infighting among US allies in the Gulf, particularly between Saudi Arabia and UAE-backed groups, weakened the anti-Houthi alliance, enabling the rebels to capture strategic locations like Perim Island and key Yemeni ports.
- Saudi Arabia has been criticized for a slow response to the crisis, reportedly declining to provide airstrike support against the Houthis and seeking US military aid, which was limited under the Trump administration.
- Saudi crude exports have already declined significantly, with shipments from its main Red Sea port halving last month, and further reductions are expected amid ongoing security threats in the region.
