The Houthis’ blockade of the Bab al-Mandeb strait couldn’t have come at a worse time for the oil market.
Iran’s proxies in Yemen have threatened to cut off a major bypass of the Strait of Hormuz, through which oil tanker traffic has slowed dramatically in recent days.
So far, the Houthis have been unable or unwilling to enforce the blockade that the militant group announced Tuesday. But the threat alone has persuaded some ships to abandon their plans to exit the Red Sea heading south.
An effective Houthi blockade of Bab al-Mandeb would create a new front in the war with Iran, potentially requiring US military intervention that could then erode US ability to help ships out of the Strait of Hormuz. It also could prevent the Saudis from getting diesel to Europe at a crucial time for the fuel market.
Oil prices have already surged $20 a barrel this month after war broke out again in the Middle East. It could rise more if the workaround no longer works.
