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Houthis Threaten Red Sea Blockade, Putting Oil Market at Greater Risk
The New York Times • • general
Key Points:
- The Iran-backed Houthi militant group has threatened to block Saudi Arabia's use of the Red Sea, potentially disrupting a vital alternative route for Middle Eastern oil exports and destabilizing the global energy market amid the ongoing war in Iran.
- Since March, Saudi Arabia has been transporting millions of barrels of oil daily through a pipeline to the Red Sea, with most shipments passing through the Bab al-Mandab strait to Asian customers.
- The Houthis' threat has already influenced maritime activity, with two oil tankers reversing course from the Bab al-Mandab toward the Suez Canal, a longer and more costly route.
- The number of crude oil tankers in the Red Sea has nearly doubled since the war began, reflecting increased use of Saudi Arabia's Yanbu port, with exports via Bab al-Mandab rising from under one million barrels per day pre-war to about 3.6 million barrels daily now.
- The majority of oil shipped through the Red Sea is destined for countries in Asia, including South Korea, Japan, and China.
