Asia’s oil buyers face US$100-per-barrel risk as Houthis threaten Saudi blockade
Analysts said any serious disruption in the Bab el-Mandeb Strait could leave Asia with fewer alternatives for Middle Eastern crude, threatening Saudi shipments and increasing the risk of oil prices rising above US$100 per barrel again.
In a statement on Monday, the Houthis said the blockade threat was retaliation for what they described as Saudi Arabia’s 12-year restrictions on the movement of food, medicine and other essential goods through Yemeni crossings, ports and airports, as well as the plundering of local resources.
A full closure of the Bab el-Mandeb Strait, the southern gateway to the Red Sea, could disrupt petroleum flows of about 7.4 million barrels per day, or roughly 7 per cent of global oil output, according to Kpler data cited by Reuters.
The Saudi-led coalition in Yemen vowed to respond firmly to threats against commercial shipping and said it had begun implementing measures to protect vessels transiting the Bab el-Mandeb Strait.
The threat has deepened uncertainty for Asian consumers because Hormuz is the main outlet for Gulf oil exports, and shipping through the strait has already slowed sharply since the US-Iran conflict escalated.
“While the Houthis have not yet clarified how the blockade would be enforced, their previous campaign against commercial vessels demonstrates both the capability and willingness to disrupt Red Sea shipping,” said Jorge Leon, senior vice-president and head of geopolitical analysis at Rystad Energy.