The Economic Times

Oil prices in for more shock - what could happen if the Houthis of Yemen close the Bab al-Mandeb Strait?

Oil prices in for more shock what happens if Yemens Houthis close the Bab el-Mandeb Strait? The Bab el-Mandeb Strait sits between Yemen, Djibouti, and Eritrea, linking the Red Sea to the Gulf of Aden. It is one of the worlds most strategic maritime chokepoints. Around 8.8 million barrels of oil per day and massive global cargo shipments pass through this narrow route. That equals nearly 1012% of global seaborne oil trade. Now the Yemen Houthi Red Sea threat is raising fears of a blockade. Tankers are already rerouting. Shipping costs are rising.