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Houthi gains and pipeline halt hit Saudi oil routes
The Economic Times··12 Sept
Houthi forces seized Yemen's port Mokha and a Red Sea island over two days, Economic Times reported. That increased their reach near Bab el-Mandeb. Saudi Arabia on Friday shut an east-west oil pipeline after drone attacks from Iraq. Kpler data showed Saudi Asia oil exports fell from about 3.4 million barrels a day in June to 128,000 in August.
Prism
What It Means For You
- Closure of the east-west pipeline removes a Red Sea export path used when Hormuz was disrupted.
- Lower Saudi flows to Asia can feed price moves in global oil markets tracked by Indian importers.
- A Saudi official said the kingdom would work with partners, including the United States, on Red Sea navigation.
What's Happening
- The report said drone attacks blamed on Iraqi militias forced the pipeline shutdown.
- Houthis in July declared a blockade of Saudi shipping and resumed large-scale attacks after four years.
- Iran continues to disrupt the Strait of Hormuz, the article said.
Saudi Export Detour
- After Hormuz pressure, Saudi Arabia piped oil west to the Red Sea for export via SUMED, Suez or Bab el-Mandeb.
- Saudi Arabia fought Houthis from 2015 until a 2022 ceasefire after a conflict that killed an estimated 150,000 people.
- Former US ambassador Michael Ratney said the latest developments are incredibly frustrating for the kingdom.
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