Eastern African importers face fresh costs after Yemen’s Iran-backed Houthis expanded the Gulf conflict by threatening Saudi-linked vessels transiting the Bab el-Mandeb Strait. The Houthis had largely stayed out of the Gulf crisis after agreeing not to target US vessels in the Bab el-Mandeb.
This week, however, they declared a “maritime embargo” on Saudi-linked vessels using the strategic waterway. Import costs remain stable, but oil topped $100 a barrel on Wednesday for the first time since May as renewed insecurity threatened shipping through the Bab el-Mandeb and Strait of Hormuz. The Bab el-Mandeb, between Yemen, Djibouti and Eritrea, carries 12 per cent of global trade and seven per cent of oil supplies.
