The Iran-backed Houthi rebels in Yemen have declared a maritime blockade against Saudi Arabia through the Bab el-Mandeb Strait, a critical waterway linking the Red Sea to the Gulf of Aden. This move comes as the Strait of Hormuz remains closed following the US-Iran war, further disrupting global oil markets.
Houthi Announcement and Rationale
In a statement, the Houthi armed forces announced an immediate maritime embargo against Saudi Arabia, citing the principle of 'an eye for an eye' in response to what they described as an unjust siege imposed on Yemen by the Saudis. The closure targets a key route for Saudi oil exports.
Impact on Global Oil Supply
The full closure of the Bab el-Mandeb Strait would reduce global oil supply by 7%, as it would trap most Saudi oil exports within the region, according to the Sydney Morning Herald. This could open a new front against the US in its war with Iran and lead to a massive drop in oil output from the Gulf.
Reactions and Condemnation
Saudi Arabia condemned the Houthi announcement and rejected accusations of besieging Yemen. The internationally recognized Yemeni government also denounced the move. The Saudi-led coalition vowed to protect shipping and respond with force, calling the threat a violation of international law and an act of maritime piracy.
Market Response
Oil prices briefly rose following the Houthi statement but later fell as traders held out hope for a diplomatic resolution. The Strait of Hormuz, which facilitated 20% of global oil trade, has been closed since the onset of the US-Iran conflict, already roiling markets.
