A fragile truce in Yemen broke down further as Iran-backed Houthi rebels advanced against Saudi-backed forces along a vital Red Sea coastline. According to statements Friday from the Houthis and a rival Yemeni commander cited by The Associated Press, the group seized control of the port city of Mokha, located just north of the Bab al-Mandeb waterway. This fighting, alongside Houthi attacks on Saudi oil carriers near the waterway and concurrent exchanges between the U.S. and Iran in the Persian Gulf, pushed Brent crude prices up to nearly $110 a barrel. Capital Economics warned that hostilities on both sides of the Arabian Peninsula threaten to drive energy prices even higher. AAA reported that U.S. gasoline prices rose 34% from the previous year to an average of $4.28 a gallon, while diesel prices jumped 61%. Data from Kpler indicated that Saudi exports fell to 3.2 million barrels daily last month, marking a decade-long low. While elevated oil prices assist Gulf producers with revenue losses, they continue to encounter fiscal deficits driven by shipping attacks in the Strait of Hormuz. Saudi tankers must navigate dangerous routes to evade Houthi assaults in the Bab al-Mandeb corridor. As Saudi exports face severe disruptions and other regional producers struggle, nations globally are tapping emergency reserves, compounding price increases. Saudi Arabia previously redirected crude through an east-west pipeline to the Red Sea after Iran closed the Strait of Hormuz. However, Houthi shipping strikes have forced the kingdom to rely on extended, expensive detours via the Suez Canal and around Africa to supply Asian markets. The capture of Mokha followed recent Houthi missile and drone strikes across southwestern Saudi Arabia, which the group stated were retaliatory actions against Saudi airstrikes. The Saudi Energy Ministry reported that Tuesday’s attacks hit oil facilities, causing fires that suspended operations and injured over 70 people. The recent escalation occurs eleven years after Saudi Arabia initiated an intervention to reverse the Houthi seizure of Sanaa, which the rebels still control. The United Nations’ International Organization for Migration reported that recent violence along the western coast has displaced at least 18,500 individuals, leaving fleeing families arriving at humanitarian sites facing critical shortages of food and shelter supplies.
Source: npr.org
