July 21, 2026
Bloomberg: How Houthis’ Red Sea Threat Risks Bigger Oil Shock
Saudi Arabia has relied heavily on its Red Sea export route via the Yanbu terminal to bypass disruptions in the Strait of Hormuz, but renewed Houthi attacks and a declared maritime blockade threaten this critical alternative. Any sustained disruption to shipping through the Bab el-Mandeb Strait could significantly hinder Saudi oil exports, raising the risk of higher global oil prices as tankers may be forced onto longer, costlier routes around Africa. The Iran-backed militants have rebuilt much of their military capability despite previous US and Israeli strikes.
Figure 1 shows import trends through Bab el-Mandeb by destination country. In the event of a disruption, four Asian countries would be hit hardest: India, China, South Korea, and Japan.
Comments
Nothing yet. Say the first thing.
Sign in to join the conversation.