- Houthis announced a naval blockade on Saudi ports effective immediately, stating it was a response to an unjust siege imposed on Yemen by the Saudis.
- Iran's Revolutionary Guards reported that two oil tankers caught fire after explosions while attempting to transit the southern route of the Strait of Hormuz.
- UKMTO reported that a tanker in the Strait of Hormuz was struck by an unknown projectile, leading to the evacuation of its crew.
- Brent crude futures rose by 1.8%, reaching $90.84 a barrel, reflecting the rising tensions in the region.
- A full closure of the Bab el-Mandeb strait could halt Saudi oil exports to Asia and potentially reduce global oil supply by 7%.
Iran's Revolutionary Guards reported that two oil tankers caught fire in the Strait of Hormuz due to explosions while navigating the southern route. This incident raises alarms over maritime safety in a crucial oil transit area.2
In a related development, Yemen's Iran-aligned Houthis declared a blockade on Saudi ports, stating it was a response to what they termed an "unjust and oppressive siege" by Saudi Arabia. The Houthis emphasized that their blockade is based on the principle of "an eye for an eye," effective immediately.1
Shipping companies have been warned against loading or discharging cargo at Saudi ports, with a communication from the Houthis indicating that such activities could lead to being targeted by their militia. The blockade could significantly impact regional trade and oil supply.
Additionally, the United Kingdom Maritime Trade Operations agency (UKMTO) confirmed that a tanker in the Strait of Hormuz was struck by an unknown projectile, prompting the crew to evacuate to a lifeboat. This incident underscores the escalating tensions in the region, which could have broader implications for global oil markets.3
As a result of these developments, Brent crude futures rose by $1.62, or 1.8%, to $90.84 a barrel, reflecting market concerns over potential disruptions in oil supply. A full closure of the Bab el-Mandeb strait could halt Saudi oil exports to Asia and reduce global oil supply by 7%.45
“Brent crude futures climbed 1.8% to $90.84 a barrel by midday as supply disruption fears mounted following the Houthi blockade announcement. The UKMTO separately reported that a tanker was hit by an unknown projectile in the Strait of Hormuz, forcing its crew to evacuate, and analysts warn a full closure of Bab el-Mandeb could reduce global oil supply by 7%.”
The Guardian
