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Yemen’s Iran-backed Houthis have completed the takeover of Bab el-Mandeb Strait after capturing strategic points in the Red Sea, according to the AFP. Bab el-Mandeb connects the Red Sea with the Gulf of Aden and provides a key maritime route between the Indian Ocean, the Suez Canal and Europe. Around 10% of global trade passes through this waterway.
That leaves global energy flows facing pressure from both ends of the Arabian Peninsula. Iran’s disruption of Hormuz threatens the main route out of the Persian Gulf, while Houthi control of Bab el-Mandeb creates another bottleneck for shipments moving through the Red Sea and toward the Suez Canal.
For the optimists, this increases Iran’s leverage significantly and could force the US out of the war which would bring oil prices to pre-war levels. For the pessimists, Trump might not care much about it and keep waiting, hoping that the sanctions and the attacks force Iran to surrender first.
This article was written by Giuseppe Dellamotta at investinglive.com.
