Article by Brad Reed republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
The increased fighting is putting even more pressure on global energy markets, with the price of Brent crude topping $107 per barrel during Thursday trading
Houthi fighters on Thursday took control of a key port city on the west coast of Yemen, putting them in a stronger position to disrupt commercial shipping—and to potentially send oil prices rocketing even higher.
According to Reuters, the Houthis seized the city of Mocha from Saudi-backed forces before moving toward the Hanish Islands, located to the northeast.
RECOMMENDED…
Fresh Calls to End Iran War After Trump Reportedly Denies MBS Request to Bomb Houthis
‘Menace to the World’: With Iran Talks Stalled, Trump Vows to Declare Strait of Hormuz a US Territory
Reuters further reported that Iran’s Islamic Revolutionary Guard Corps provided the Houthi fighters with weapons and guidance ahead of their successful assault.
The Houthis’ seizure of more territory along the Red Sea gives the militant group a greater ability to launch attacks on vessels trying to transport oil through the Bab el-Mandeb Strait.
Petroleum exporters in the region have had to rely more heavily on the Bab el-Mandeb Strait ever since Iran shut down shipping traffic in the Strait of Hormuz in retaliation for President Donald Trump’s illegal war of choice, which he launched in February without authorization from Congress.
Restricting shipments through both straits would put even greater pressure on global oil markets, which have already been under strain since the start of the Iran War.
A Thursday report from Bloomberg noted that Saudi Arabia, whose ships have been targets of Houthi attacks, revealed that its oil output has dropped to 6.24 million barrels per a day, its lowest level of oil production since 1990.
The price of Brent crude topped $107 during Thursday trading, a 6% increase from the day before. Data released Thursday by the American Automobile Association showed that the average price of gas in the US has reached $4.28 per gallon while the average price of diesel has reached a record high of $5.98 per gallon.
Fawaz Gerges, professor at the London School of Economics, said in an interview with The New York Times that the Houthis, despite receiving assistance from Iran, have their own distinct goals and see Trump’s illegal war as a “golden opportunity” to make advances against Yemen’s Saudi-backed government.
Additionally, said Gerges, “Iran directly and indirectly benefits from what the Houthis have been doing,” since “all-out war could have major implications for the global energy supply.”
Brett Erickson, managing partner at Obsidian Risk Advisors, wrote in a social media post that Iran and the Houthis have all the incentive in the world to keep the pressure on global petroleum shipping.
“Brent Crude just spiked over $107 per barrel,” Erickson wrote. “Just a mere month ago, it was trading at $85. That’s a 25.9% increase in a month. And with no off-ramp for Trump until at least the midterms are over, we’re looking at a long period of elevated oil prices now.”
Article by Brad Reed republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
