How the Bab al-Mandab blockade threat helped push oil back above $100
Escalating Houthi warnings to ships carrying Saudi crude through the strait lead to fears of further price surgeA fresh front in the Middle East crisis opened this week, bringing a
By The Guardian
Oil prices have risen back above $100 a barrel after Houthi threats to target ships carrying Saudi crude through the Bab al-Mandab strait. The move has raised fears of further disruption to a key shipping route for global energy supplies.
The latest escalation began when the Houthis sent an email to shipping companies on Monday warning them not to load or unload at Saudi ports or risk being targeted anywhere within their reach. According to the source report, the group repeated the threat the following day and said at least six ships had changed course.
The Guardian said Brent crude had climbed by more than 13% in a matter of days and breached the $100 mark on Thursday. It also reported that a senior Houthi official said the policing of Saudi crude exports through Bab al-Mandab would cause oil prices to “skyrocket to $200 a barrel”.
The report said the Houthis accused Riyadh of breaching a four-year ceasefire earlier this month. It also said Saudi Arabia’s military warned that Houthi threats against transiting vessels would be dealt with “swiftly and firmly”.
Maritime intelligence data cited in the report showed at least five Saudi-linked oil tankers bound for Bab al-Mandab had turned back as the threats increased, with four carrying Saudi-origin cargo. The Houthis also said on Thursday that they had hit two Saudi tankers, and a Riyadh news agency later confirmed that one was ablaze.