A potential Houthi maritime blockade could cut global oil supplies by 7%, tightening markets already strained by Middle East tensions.
Brent crude prices climbed to $89 a barrel as Yemen’s Houthis threatened to block the Bab el-Mandeb Strait, a critical Red Sea oil export route for Saudi Arabia. The move follows Iran’s effective closure of the Strait of Hormuz, forcing Riyadh to rely on alternative shipping lanes.
Analysts estimate a successful blockade could slash global oil supplies by 7%, disrupting most Saudi exports. Prices have already risen from $72 in early July after a U.S.-Iran truce collapsed, adding pressure to energy markets.
Higher oil costs risk stoking inflation and dampening consumer spending, potentially weighing on economic growth and financial markets if sustained.