Oil Nears $93 as the Houthis Turn Back Saudi Tankers
Brent crude climbed towards $93 a barrel, a five-week high, after Yemen’s Houthis enforced a naval blockade of Saudi Arabia, forcing two tankers laden with Saudi crude bound for China and India to reverse course in the Red Sea. With the Strait of Hormuz already throttled, the closure threatens the kingdom’s main alternative export route. Kazakhstan separately halted Black Sea exports after a fourth drone strike on tankers at its Novorossiysk terminal.
The Houthis warned shippers they would attack any vessel loading or discharging Saudi cargo, in retaliation for a Saudi strike on Sanaa. Saudi Arabia routes much of its exports through the Red Sea port of Yanbu, now imperilled, while the Kazakh suspension removes another 80 per cent of that country’s crude from a market already squeezed by the Gulf war. Analysts warn prices could reach $115 or more if the Bab el-Mandeb strait closes, with European diesel margins already at record highs and US petrol back above $4 a gallon. For British drivers the pressure feeds straight to the pumps. Watch whether the Houthis attempt enforcement, and how Riyadh responds.