Why Houthi military gains in Yemen may further increase gas prices
Houthi military gains in Yemen, specifically the control of the port city of Mokha, have disrupted shipping lanes and contributed to rising global oil prices. The conflict is forcing Saudi Arabia to reroute tankers, further straining energy markets and increasing costs for consumers.
Why it matters
The intersection of regional conflict and global energy supply chains poses a direct threat to economic stability and inflation.
DUBAI, United Arab Emirates - A tenuous years-long truce in Yemen unraveled further this week as Iran-backed Houthi fighters pushed out Saudi-backed Yemeni forces along a key stretch of Red Sea coastline.
Statements by the Houthis and a rival Yemeni commander, who's cited by The Associated Press, said Friday the Iran-backed group had taken control of the port city of Mokha, just north of the Bab al-Mandeb waterway.
The fighting in Yemen, and the Houthis' targeting of Saudi oil carriers around that waterway, coincided this week with another exchange of fire in the Persian Gulf between the United States and Iran.
As a result, the price of Brent crude—a global metric for oil prices—shot up to nearly $110 a barrel. The London-based research firm Capital Economics says the fighting on both sides of the Arabian Peninsula raises the risk of even further energy price hikes in the coming weeks.
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