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Houthis declare maritime blockade on Saudi Arabia, eye Red Sea shipments

Houthis declare maritime blockade on Saudi Arabia

Houthis declare maritime blockade on Saudi Arabia

The Iran-backed Houthi group said on the 20th it would immediately impose a maritime blockade on Saudi Arabia with the Red Sea in mind, in retaliation for attacks including a strike on an airport in Yemen where the Houthis are based by the Saudi-backed Yemeni interim government.

If the Houthis move ahead with disruptions such as attacks on or seizures of Saudi-linked vessels, global oil supplies could face further turmoil. A spokesman said in a televised address that Saudi Arabia 'continues an unjust and oppressive siege' and that it was unacceptable, arguing that the group would respond on the basis of an 'eye for an eye' principle. He also called on the people of Yemen to deploy fighters to the front lines and prepare for any scenario.

Tensions rise on Red Sea route

Yemen's interim government on the 13th attacked a runway and blocked the arrival of an Iranian aircraft attempting to land at the airport in the Houthi-controlled capital, Sanaa. In response, the Houthis carried out their first missile attack in four years, targeting Saudi Arabia, the backer of the interim government.

The Houthis' declaration of a maritime blockade could also affect Saudi oil exports. After the Strait of Hormuz was effectively blocked by the US-Iran military clash, Saudi Arabia has switched to a diversion route through the Red Sea. According to Britain's LSEG, exports from Yanbu port on the Red Sea coast were around 1.5 million barrels a day in February, but have remained above 4 million barrels since April.

Importance of the Bab el-Mandeb Strait

Yemen also faces the Bab el-Mandeb Strait, a strategic chokepoint on the Red Sea side. According to the US Energy Information Administration (EIA), oil shipments passing through the strait rose about 1.5 times in January-March from a year earlier, while their share of global supply also increased from 4% to 6%.

Jorge Leon, head of geopolitical analysis at European research firm Rystad Energy, said that with major maritime outlets in the Gulf region almost blocked, any disruption to the Bab el-Mandeb Strait, one of the few alternative routes, would heighten the risk of crude prices rebounding sharply.

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