- Donald Trump is in revenge mode with Iran and believes the only way to get through to its leadership is with military force, allies have said.
- The Bab al-Mandab blockade threat from Yemen’s Houthi militias has contributed to oil prices rising back above $100 per barrel.
- The Houthi threat to Red Sea shipping could lead to a significant rebound in oil prices, with predictions of prices potentially reaching $200 a barrel if disruptions continue.
- Trump's frustration is growing as the US-Iran conflict continues without resolution, with military options being considered as hopes for diplomacy fade.
- The Bab al-Mandab strait is crucial for Gulf oil exports, and any disruption could threaten one of the few remaining routes to circumvent the Hormuz blockade.
- Since the breakdown of peace talks between the US and Iran, the Brent crude benchmark has climbed by more than a quarter to over $100 a barrel.
Donald Trump is reportedly in 'revenge mode' against Iran, believing military force is necessary to address the ongoing conflict.1
As tensions escalate, the US military is moving weapons and special forces to the Middle East, with hopes for a diplomatic resolution fading.
The Bab al-Mandab blockade has significantly impacted oil prices, with Brent crude rising over 13% in just days, now exceeding $100 a barrel. This surge follows threats from Yemen's Houthi militias targeting Saudi oil exports, raising fears of prices reaching $120 (£90) a barrel.
The blockade affects a crucial trade route, with approximately 4.1 million barrels of crude oil passing through daily, representing 5% of global oil supply. Saudi Arabia has begun rerouting oil exports via a pipeline to mitigate risks, but the situation remains precarious.
A senior Houthi official warned that their actions could cause oil prices to “skyrocket to $200” a barrel, while Saudi Arabia's military has vowed to respond firmly to any threats against shipping.
The average price of diesel in the UK has already risen by 5% to 172.14p a litre, reflecting the broader impact of these geopolitical tensions on global energy markets.
“Brent crude has jumped over 13% this week as Houthi militias target Saudi oil exports via Bab al-Mandab, with a senior Houthi official warning prices could 'skyrocket to $200 a barrel'. Meanwhile, the average price of diesel on British forecourts has climbed by almost 8p to 172.14p a litre in the past fortnight.”
The Independent
The Guardian
