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The Bab al-Mandeb Strait, a lifeline for the global economy, is in jeopardy
- In the past 48 hours, Yemen's Iran-backed Houthi rebels captured the port city of Mocha and strategic Perim Island, tightening their grip on the Bab al-Mandeb strait at the mouth of the Red Sea.
- Saudi Arabia previously exported millions of barrels daily via the Bab al-Mandeb from the port of Yanbu, but flows collapsed to about 400,000 barrels per day in August owing to persistent Houthi threats and have declined further.
- On Thursday, Brent crude and WTI rose more than 7% to hit $108 and $103 a barrel respectively, their highest levels since May; U.S. diesel prices topped $6 a gallon on Friday for the first time, according to AAA data.
- Xeneta chief analyst Peter Sand estimates vessel transits through the strait have fallen between 60% and 70%, with transits declining 46% in the past couple of days as ships avoid the route.
- Rising energy costs and sustained disruptions are driving broader inflation, Kpler senior crude analyst Johannes Rauball noted, raising the specter of interest rate hikes that would increase borrowing costs for consumers.
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Mediafax
MediafaxAn Israeli official warns that there is a bigger crisis than that in Ormuz. It is a huge danger, claims the official who refers to the control exercised by the Houthi group in Yemen over the Bab-el-Mandeb Straits. An Israeli official said for Channel 12 that any control exercised by the Houthi group over the Bab-el-Mandeb Straits is more dangerous [...] Article An official warns that there is a bigger crisis than that in the Ormuz Strait: It is …
Coverage Details
Total News Sources11
Leaning Left1Leaning Right0Center7Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
13%
C 87%
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