What Threats to Red Sea Shipping Could Mean for Oil Markets
Dow Jones
Jul 27
4%
That's how much of global oil supply is under threat as Houthi militants threaten shipping through the Red Sea, according to Société Générale.
Iran-banked Houthis have fired on Saudi Arabia-linked vessels in the Red Sea in recent days, threatening the Bab al-Mandeb route that the kingdom has been using to bypass the Strait of Hormuz.
The attacks show the "conflict has entered a more unstable phase rather than moving toward a durable resolution," strategists at Société Générale wrote in a note today. The bank estimates that each month that passes without a resolution will add $10 a barrel to global oil prices.
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