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Saudi and 13 partners form coalition to secure Red Sea shipping
The alliance is framed as protection for the Bab al-Mandeb Strait and comes as the Strait of Hormuz faces heightened US-Iran tensions, with the Red Sea route previously handling about 20% of global oil and gas exports.
Saudi Arabia and 13 other countries have announced the creation of a Multinational Maritime Defense Alliance aimed at safeguarding freedom of navigation through the Bab al-Mandeb Strait, the Red Sea and the Gulf of Aden, according to a Reuters report cited by FXStreet.
Saudi Arabia's Ministry of Defence said the coalition is intended as a framework to strengthen collective maritime defense cooperation, with the announcement tied to concerns that regional tensions are intensifying around key chokepoints.
The report links the latest Red Sea shipping focus to broader US-Iran conflict developments, noting that a virtual closure of the route has weighed on the global economy, while the path formerly carried about 20% of global oil and gas exports.
In markets, West Texas Intermediate was shown down 1.2% on the day to $82.6 at the time of writing.