Why Yemen's Iran-backed Houthis may be more bad news for oil prices
The Houthi advance in Yemen, seizing control of Mocha and moving towards strategic islands along the Red Sea coast, has raised concerns about their potential leverage over the Bab el-Mandeb Strait. This vital artery for oil shipments is a key choke point, and the increased Houthi control has coincided with a surge in oil prices, with Brent crude rising over $18 a barrel in early trading. Shipping through the Strait of Hormuz has also dwindled amidst intensified attacks on vessels by US and Iranian forces.
The increased Houthi control over the Bab el-Mandeb Strait could further disrupt global oil supplies, leading to continued volatility and potentially higher energy prices for consumers worldwide.
