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Houthi Advance and Saudi Pipeline Shutdown Threaten Gulf Oil

Houthi Advance and Saudi Pipeline Shutdown Threaten Gulf Oil
Gulf oil threatened anew as Houthis reach key island and pipeline is shut down · theprint.in

The Houthis, an armed group in Yemen, moved onto an important island near a major shipping route.

This route is called the Bab el-Mandeb Strait.

Control of the strait could make it harder for ships carrying oil and other goods to pass.

Saudi Arabia also temporarily stopped an important oil pipeline after drones attacked it.

That pipeline normally carries millions of barrels of oil each day without using the Strait of Hormuz.

These events could reduce the amount of oil reaching world markets.

Saudi Arabia asked the United States for help, but the United States reportedly offered information rather than sending troops.

The Houthis said most ships could still travel safely, while other reports said their attacks had already affected Saudi oil supplies.

The fighting has added pressure to oil prices and increased fears about global energy supplies.

Key facts

Strategic location
Perim island lies in Yemen’s Bab el-Mandeb Strait, a vital global shipping route.
Pipeline length
Saudi Arabia’s East-West pipeline is 1,200 kilometers (745 miles) long.
Pipeline capacity in recent months
The pipeline shipped approximately 4 million to 5 million barrels per day.
Share of global supply
That pipeline volume represented about 4% to 5% of global oil supply, according to analysts and ship-tracking companies.
Reported drone origin
Saudi Arabia said the drones targeting the pipeline came from Iraq, but it did not identify the attackers.
U.S. response
Washington reportedly declined direct military action for now but offered intelligence sharing and targeting assistance.
Oil prices
Oil prices were on track to finish the week above $100 per barrel for the first time since mid-May.

Sources

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