Market Snapshot
The market for the Bab el-Mandeb Strait effectively closing by June 30 is currently priced at 12.8% YES, up from 12% 24 hours ago. Meanwhile, the market for the Strait of Hormuz traffic returning to normal by July 31 remains less relevant, with 26.5% YES, reflecting a decrease from 30% a day ago.
Key Takeaways
The Houthis’ announcement appears to increase the likelihood of disruptions in the Bab el-Mandeb Strait, as suggested by the market’s increased pricing for closure.
This development suggests a limited impact on the Strait of Hormuz traffic, with pricing showing little change in market expectations.
