Crude Oil Prices Could Reach $200? Houthi Blockade of Bab-el-Mandeb Strait Sparks Global Energy Fears

Global energy markets face a severe escalation as Yemen's Houthi rebels announced and implemented a naval blockade against Saudi Arabia at the Bab-el-Mandeb Strait. This follows the virtual closure of the Strait of Hormuz amid the ongoing US-Iran war.

Key Highlights:
- Strategic Chokepoint Blocked: The Bab-el-Mandeb Strait connects the Red Sea to the Gulf of Aden and handles roughly 10-12 percent of global marine trade, serving as a vital southern entry to the Suez Canal.
- Price Surge Warning: Reports citing Iranian media suggest that continued disruptions in this crucial route could potentially drive crude oil prices up to $200 per barrel.
- Impact on India: India imports over 85% of its crude oil and relies heavily on these West Asian and North African routes. Furthermore, approximately 35% of India's total foreign trade—including 80% of exports to Europe such as textiles, pharmaceuticals, machinery, and basmati rice—passes through the Red Sea corridor.