Oil price surges! Houthi rebels seize Muha, a Red Sea coastal city, shifting control of the Bab el-Mandeb Strait.

The conflict in Yemen continues to escalate, with the Houthi rebels advancing toward the Bab el-Mandeb Strait, further spilling over from the region and posing new risks to the global energy supply chain.

According to a Xinhua News Agency report citing Reuters on the 10th, three Yemeni government sources stated that the Houthi rebels have taken control of the Red Sea coastal city of Muha . Reuters also cited Yemeni military sources as saying that the Houthi rebels are advancing towards Muha and Dhubab, seeking to control the entire Red Sea coastline of Yemen .

Both Muha and Dhubab are located on the Red Sea coast of Yemen, near the northern entrance to the Bab el-Mandeb Strait. The Bab el-Mandeb Strait connects the Red Sea and the Gulf of Aden, serving as a crucial shipping route from the southern end of the Red Sea to the Indian Ocean, and also an important channel for transporting Gulf crude oil to Europe via the Red Sea and the Suez Canal.

As Houthi rebels advance further into this strategic location, market concerns about disruptions to energy transport intensify. Brent crude rose more than 1% to $102.4 per barrel.

The Bab el-Mandeb Strait is under pressure, increasing risks to energy transportation.

The Bab el-Mandeb Strait connects the Red Sea and the Gulf of Aden, and is a vital global energy and trade route. Gulf crude oil, fuel, and other commodities travel north through the Red Sea, then via the Suez Canal and Egypt's SUMED pipeline into the Mediterranean Sea; some goods are also transported to Asia via this strait.

If shipping safety deteriorates further, shipping companies may choose to detour around the Cape of Good Hope in Africa, significantly increasing transport time and fuel costs, and potentially raising shipping risk premiums. For the crude oil market, the real impact is not merely whether the shipping route itself is "closed," but rather the resulting decrease in transport efficiency and increases in costs such as insurance and freight due to heightened safety risks.

Meanwhile, the risks in the Strait of Hormuz have not subsided. If both the Bab el-Mandeb Strait and the Strait of Hormuz are severely disrupted simultaneously, Gulf energy exports will face greater pressure, and the fragility of the global energy supply chain will be further exposed.

The ongoing conflict between the Houthis and Saudi Arabia could support oil prices due to anticipated supply disruptions.

The military conflict between the Houthi rebels and Saudi Arabia continues.

According to Xinhua News Agency, Turki al-Maliki, a spokesman for the Saudi-led coalition, said on the 9th that the Houthi rebels in Yemen launched attacks on multiple locations in Saudi Arabia that day using ballistic missiles and drones. The cities attacked included Khamis Mushait, Abha, and Jazan.

The day before, the multinational coalition issued a statement saying that the Houthi rebels in Yemen launched attacks on civilian and economic facilities in Saudi cities such as Abha, Jazan, and Najran, injuring 73 civilians, including women and children.

If the conflict escalates further, its effects may continue to spill over, with anticipated supply disruptions, transportation costs, and geopolitical risk premiums becoming key factors supporting crude oil and other commodity prices.

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