“Oil could rise to $200”: Amid renewed US-Iran hostilities, Yemen threatens to close Bab al-Mandeb Strait | Today’s news
Yemen’s threat to close the Bab al-Mandeb Strait has raised global concerns about energy supplies and maritime trade at a time when another critical transit route in the Middle East, the Strait of Hormuz, is already under pressure due to war in West Asia.
The warning came after Mohammed al-Farah, a member of Yemen’s Ansarullah movement’s political bureau, said the Strait of Bab al-Mandeb and the Strait of Hormuz could be closed “in an operational alliance” if Saudi Arabia continued to target Yemen’s critical infrastructure, according to Press TV, Iran’s state media.
“If the current situation worsens, the Strait of Bab al-Mandeb and the Strait of Hormuz will be closed as part of the operational alliance. Oil prices would then soar to $200 per barrel in a terrible shock,” al-Farah said in a statement published by Press TV on Monday.
What are the consequences?
The potential consequences of simultaneous disruptions to two of the world’s most strategically important maritime hotspots could send oil prices soaring while disrupting global trade.
The Bab al-Mandeb Strait connects the Red Sea to the Gulf of Aden and serves as the southern gateway to the Suez Canal, making it a vital route for trade between Asia, Europe and the Middle East. According to a Reuters report, around 8.8 million barrels of oil and petroleum products pass through the corridor daily, with an estimated 10-12 percent of global maritime trade depending on the route.
At its narrowest point, the strait is about 29 kilometers wide.
Meanwhile, the Strait of Hormuz transports around 20 million barrels of oil a day, roughly a fifth of global oil consumption. Together, Hormuz and Bab al-Mandeb form the primary maritime corridor through which Gulf producers export oil and liquefied natural gas (LNG) to international markets.
A simultaneous disruption to both waterways would limit global energy supplies, forcing oil tankers and container ships to take a much longer route around the Cape of Good Hope at the southern tip of Africa.
The diversion would extend journeys between Asia and Europe by about 12 to 15 days, increase fuel consumption, insurance costs and freight rates, while delaying deliveries of oil, LNG, food products and industrial goods.
Renewed hostilities between Yemen and Saudi Arabia
The warning comes at a time of renewed hostilities between Yemen’s Ansarullah movement and Saudi Arabia. Yemeni officials have accused Riyadh of targeting civilian infrastructure, including Sanaa International Airport, while warning of further escalation if attacks continue.
Yemeni forces further claimed to have launched missile and drone strikes targeting military installations, including King Khalid Air Base and Abha International Airport in Saudi Arabia.
