Iran-backed Houthi rebels have imposed a naval blockade on Saudi Arabia, warning they will attack ships carrying Saudi crude oil through the Bab el-Mandeb strait. The move sent Brent crude oil prices above $95 a barrel on Monday, hitting a five-week high.
What the Houthis are doing
The Houthis, who control much of Yemen, announced they would target vessels transporting Saudi oil via the narrow strait that connects the Red Sea to the Gulf of Aden. The Bab el-Mandeb is a critical chokepoint for global oil shipments. The group said the blockade is a response to the Saudi-led military campaign in Yemen.
Oil market reaction
Brent crude, the international benchmark, rose past $95 for the first time in five weeks. Traders are pricing in the risk that the blockade could disrupt supplies from one of the world's largest oil exporters. The price jump reflects immediate concern about the security of tanker routes.
Supply fears
The blockade has raised fears about oil supplies, especially if it lasts for an extended period. Saudi Arabia has not yet commented on how it plans to respond. The Bab el-Mandeb strait sees roughly 5% of global oil transit daily, so any sustained disruption could tighten markets further.
No timeline has been given for how long the Houthis intend to enforce the blockade. The situation remains fluid, with no immediate diplomatic resolution in sight.
