Houthis declare maritime embargo against Saudi Arabia
Houthi militants in Yemen announced on Monday that a naval embargo on Saudi Arabia would come into effect immediately, threatening to worsen the oil supply disruption triggered by Iranian attacks on tankers in the Strait of Hormuz.
The Houthis had repeatedly threatened to close the Bab al-Mandeb Strait during the US-Iran war. The Bosphorus is a transit point for commercial ship traffic connecting the Red Sea to the Gulf of Aden and global markets.
Statement made by militants state newsHe accused the Saudis of waging an “aggressive siege” against them. Tensions escalated last week after they claimed that Riyadh bombed Sanaa International Airport.
The Saudis diverted millions of barrels of oil a day through a pipeline to an export terminal on the Red Sea. These exports served as an important relief valve for global oil markets during the US-Iran war.
Closing Bab al-Mandeb would clog these barrels and worsen the disruption triggered by Iranian attacks on tankers in Hormuz.
But there has been little change in crude oil prices in response to the Houthis’ threat. International benchmark Brent crude rose nearly 4 percent overnight to surpass $90 a barrel as at least three U.S. soldiers died during the latest clashes between the United States and Iran. Prices fell after Tehran said it was still open to negotiations with Washington.
The US-Iran war escalated on June 17 with the collapse of the interim agreement to reopen Hormuz. Tehran has repeatedly attacked oil tankers this month, killing at least two sailors and wounding more than a dozen.
The US bombed Iran for nine consecutive days and reimposed a naval blockade in response to tanker attacks. Tehran fired missiles at US allies in the Gulf in retaliation.
As the conflicts increased, tanker traffic in Hormuz decreased. The Trump administration said the strait remains open and millions of barrels of oil are shipped every day under US military protection.
