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Houthis threaten Bab el-Mandeb closure, raising oil supply risk

About 12% of world trade passes through Bab el-Mandeb, and WTI was up 0.6% to $84.75 as the threat emerged.

Reported · Written up by our desk · Energy

Yemen’s Houthi rebels said they have closed the Bab el-Mandeb Strait to Saudi linked shipping, citing retaliation for Saudi Arabia’s blockade of Yemen and an attack on the international airport in Sanaa, according to FXStreet citing reporting by The Guardian.

The outlet said the Houthi claim is intended to force reroutes of shipping, and that there was no independent confirmation of the report that six ships were affected on Tuesday.

Bab el-Mandeb is described as a vital chokepoint connecting the Red Sea to the Gulf of Arabia, with FXStreet noting that around 12% of global trade moves through the narrows. The news raised concerns that disruptions could widen the Iran war and further disrupt global oil supplies and international trade.

FXStreet also highlighted market pricing, saying WTI was up 0.58% on the day at $84.75 at the time of writing.

Latest closeWTI crude $79.00 ▼0.8%

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