Could Bab al-Mandeb Become a New Hormuz
The article highlights the escalation of tensions in the Bab Al-Mandab Strait following the announcement by the Houthi group of an attack on two oil tankers carrying Saudi oil. This poses a threat to one of the most vital maritime routes for global oil transportation. The attack has turned Bab Al-Mandab into a direct threat point to a significant portion of the world's energy supplies, especially since the market heavily relies on oil from Saudi Arabia and Russia passing through this strait. The threat has led to changes in shipping routes, with many vessels altering their destinations, adding up to 34 days and $5 million in shipping costs. It has also heightened concerns over disruptions to oil supplies and prices, which have already risen to around $98 per barrel, with the possibility of surpassing $110 if tensions persist. This crisis is expected to undermine the confidence of shipping and insurance companies, with some vessels potentially ceasing transit, which could threaten the stability of global energy markets.
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