All Saudi Ships Targeted by Houthis
The Houthi group in Yemen has expanded its blockade threat against Saudi Arabia. In a message to ship owners, the Iran-backed group warned all ships, not just Saudi-flagged vessels, against docking at Saudi ports.
This threat comes amid escalating conflict in the Middle East. The Houthis stated that any ships continuing to travel to or from Saudi ports could face sanctions and risk becoming targets within their military operations.
The move adds pressure on Saudi Arabia's oil exports from the Red Sea port of Yanbu. The port has become a vital waterway after the Iran-backed war nearly halted shipping through the Strait of Hormuz.
Saudi Arabia had previously been able to divert most oil exports from the Persian Gulf to Yanbu via an east-west pipeline connecting the two coasts. However, the Red Sea route remains vulnerable because it must pass through the Bab el-Mandeb Strait, a key chokepoint in the global energy trade.
The Saudi-led military coalition in Yemen stated that it has begun implementing operational measures to protect ships in the Bab el-Mandeb Strait. However, the effectiveness of the Houthi blockade remains unclear and will depend heavily on their ability to attack shipping in the region.
Impacting the market: The Houthi threat could make oil prices sensitive again to supply risks. If ships begin avoiding Saudi ports or the Red Sea route, shipping and insurance costs could rise, while Brent could potentially strengthen again due to market concerns that millions of barrels of Saudi exports could be disrupted. (arl)
Source: Newsmaker.id
