The conflict in West Asia saw a significant development with the emerging situation in Yemen. Houthi forces have reportedly made advances along Yemen’s Red Sea coast. Reuters has reported that they have taken the strategic port city of Mocha and are moving closer to the Bab-el-Mandeb Strait. The development comes in the backdrop of renewed fighting between the Houthis and the Yemeni forces.
This has led to fresh concerns over global shipping and energy supplies. While the Strait of Hormuz is the main route for oil & gas exports from the Gulf region, Bab-el-Mandeb connects the Red Sea with the Gulf of Aden and is an important route for trade between Asia and Europe. Houthi control of this strait could create challenges for Saudi oil exports and broader maritime trade. The Houthis have also claimed that Saudi Arabia has carried out multiple airstrikes in Yemen, in retaliation to earlier Houthi attacks on Saudi infrastructure.
In Iran, Iranian state media has reported that several areas of Sirik were hit, with explosions also reported around Minab and Qeshm Island. All these 3 locations lie just north of the Strait of Hormuz and along the southern coast of Iran. For the first time in 20 years, International Atomic Energy Agency (IAEA) – the international nuclear watchdog – has referred Iran to the UN Security Council, citing their failure to cooperate with a long-running probe into uranium traces found at undeclared sites.
Meanwhile, Brent crude futures rose again today, remaining well above 100 USD a barrel, as the latest attacks have weakened chances of a speedy recovery of maritime traffic in the region.
