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Houthi Threat to Yanbu Port Risks Global Oil Supply

Saudi Arabia redirected oil to the Yanbu port to avoid Hormuz Strait disruptions, but Houthi threats now risk closing the Bab-el-Mandeb Strait. This could push Brent oil prices above $150 per barrel and cause severe supply shortages in Asia, which depends heavily on Middle Eastern oil. Nations such as the Philippines and South Korea have responded with energy conservation policies. The potential dual closure of key straits would significantly impact global oil markets and increase volatility.

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Houthi Threat to Yanbu Port Risks Global Oil Supply

Saudi Arabia's diversion of oil to the Yanbu port faces new threats from Houthi militants, risking closure of the Bab-el-Mandeb Strait and potential oil price spikes above $150 per barrel.

Yanbu: An Alternative Route

  • Saudi Arabia diverted approximately 4.6 million barrels of crude per day to Yanbu in early March 2026 to bypass the blockaded Strait of Hormuz.
  • This represents over three times the average 2025 shipments, according to Vortexa data.

Houthi Military Escalation

  • Iran-backed Houthi militants entered the war on March 28, 2026, firing missiles toward Israel and threatening to close the Bab-el-Mandeb Strait.
  • The strait, meaning 'Gate of Tears,' is a critical chokepoint for oil tankers from Yanbu bound for Asia.
  • Houthis possess drones and anti-ship missiles, posing significant risks to shipping.
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Oil Price and Market Impact

  • Brent crude prices have surged 50% since February 28, trading around $110 per barrel.
  • If Bab-el-Mandeb closes, Brent could exceed $150 per barrel within months, according to Rystad Energy.
  • Such a closure would add weeks to voyage times and increase insurance and freight costs.

Asian Supply Concerns

  • Asia relies on about 60% of its oil from the Middle East, with all Yanbu exports currently destined for the region.
  • Analysts predict crude shortages in Asia by April if Saudi shipments are delayed.
  • Countries like the Philippines and South Korea have declared energy emergencies and implemented conservation measures.

Emergency Measures

  • The Philippines shortened the work week for government workers to conserve energy.
  • South Korea advised citizens to take shorter showers to reduce demand.
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