Why new Houthi threats in the Red Sea could spell trouble for global oil prices and inflation

Per The Conversation, Iran-backed Houthi rebels in Yemen announced Monday they would impose a maritime embargo on Saudi Arabia, specifically targeting vessels through the Bab el-Mandeb Strait—the critical waterway that handles roughly ten to twelve percent of the world's maritime trade. Saudi Arabia has increasingly relied on this route to ship crude oil, with the port of Yanbu now handling more than seventy percent of the country's crude exports. If the blockade expands beyond Saudi vessels to all shipping, global trade in manufactured goods and electronics could face serious disruptions. Experts warn that higher insurance costs for transit through the region will likely be passed on to consumers, adding to inflationary pressures worldwide.

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