Oil Shock Looms As Hormuz Crisis Meets Houthi Threat To Bab El-Mandeb Shipping Route

The global oil market is facing a fresh shock as disruptions around the Strait of Hormuz collide with growing threats to the Bab el-Mandeb Strait. Yemen's Houthis have warned against Saudi-linked shipping, putting a crucial alternative route for Saudi oil exports under pressure. With tankers changing course and some reportedly attacked, shipping risks, insurance costs and freight rates are rising. Rerouting vessels around Africa could add thousands of nautical miles and weeks to journeys, increasing costs across global supply chains. As two key maritime chokepoints face simultaneous disruption, fears are growing that tighter oil supplies could push prices higher and fuel inflation worldwide.