Potential Red Sea Conflict Could Impact Global Oil Prices

Bloomberg reported on Tuesday, March 31, citing several informed European officials, that Iran is urging Yemen's Houthi forces to prepare for attacks on Red Sea vessels. According to Ming Pao, there is internal disagreement within the Houthi leadership regarding whether to take more aggressive actions. Following the outbreak of conflict in Iran, much of the Middle Eastern oil originally exported through the Strait of Hormuz has been rerouted via Saudi Arabia's Red Sea port of Yanbu, passing through the Bab el-Mandeb Strait off Yemen to reach Asian markets. Experts warn that if the Houthis block the Bab el-Mandeb Strait, creating a situation similar to the current state of the Strait of Hormuz, international oil prices could surge further in the coming months.