Saudi Arabia’s Crude Exports Face New Risks as Yemen’s Houthis Consider Maritime Blockade
After disruptions in the Strait of Hormuz, the Iran-backed Houthi movement in Yemen has announced a maritime blockade against Saudi Arabia. This blockade raises concerns over the movement of millions of barrels of crude oil that Saudi Arabia exports through the Red Sea. Houthi spokesperson Yahya Saree stated that the blockade on Saudi vessels would take effect immediately, citing Saudi Arabia’s siege of Yemen’s capital, Sana’a, as the reason for this action.
Brent crude, the global oil benchmark, experienced fluctuations on Monday amid rising tensions. As of 2:06 p.m. in London, Brent crude was trading 0.2% higher at $88.23 a barrel. The situation has escalated following an attack by Riyadh on Sana’a airport, which prompted the Houthis to strike an airport in southern Saudi Arabia. This marks the most serious escalation between the two sides since the ceasefire in 2022.
Saudi Arabia’s crude exports face fresh threats
The blockade adds uncertainty to oil supplies from the Middle East. Shipping activity through the Strait of Hormuz, a critical route for nearly one-fifth of global oil supplies, remains nearly halted due to ongoing tensions between Tehran and Washington. Any disruption to shipments through the Red Sea, now the primary route for Saudi crude exports, would further impact global oil trade.
In response to the conflict, Saudi Arabia has rerouted its crude exports through the Red Sea port of Yanbu. Shipments from Yanbu reached a record 4.19 million barrels per day last month, helping to alleviate pressure on global supplies. However, this route is still at risk, as tankers in the Red Sea face threats from Houthi militants, who have previously targeted commercial vessels in the area.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
