"Millions of barrels of crude could be tied up if Houthi attacks on cargo ships intensify"

As Yemen’s Houthi rebels have effectively formalized their participation in the Middle East conflict on Iran’s side, the possibility is being raised that they could resume attacks on vessels in the Red Sea. Concerns are growing over potential disruptions to global crude supply.

On the 28th (Korea time), The Wall Street Journal reported that analysts warn a renewed Houthi campaign targeting international shipping transiting the Red Sea could deliver a significant shock to global energy markets.

The Houthis have previously officially announced that they carried out a first attack on Israel.

During the Israel-Hamas conflict, the Houthis also threatened oil tankers and container ships passing through the Red Sea, at times disrupting international maritime logistics.

Some also expect oil-producing countries could move to cut output if attacks resume.

The Wall Street Journal said, "Saudi Arabia is currently rerouting as much cargo as possible to ship via the Yanbu port on the Red Sea coast instead of the Persian Gulf to minimize disruptions to crude exports," adding, "This has helped offset volumes that cannot pass through the Strait of Hormuz and has contained sharp rises in oil prices."

"However, if maritime security in the Red Sea is threatened, access to Yanbu would become difficult," the paper said. "In that case, millions of barrels a day of crude could be stranded." It added, "Experts also see the possibility that Saudi Arabia, alongside Kuwait and Iraq, could move to cut output if it becomes difficult to absorb export disruptions."