SEATTLE (Oil Monster): Yemen’s Houthi rebels have formally entered the intensifying Middle East conflict, according to analysts at J.P. Morgan led by Natasha Kaneva. In a report, they warned that the development creates a second maritime flashpoint alongside the Strait of Hormuz.
The analysts noted that the conflict has expanded into the Red Sea and the Bab el-Mandeb, exposing two critical global energy corridors simultaneously. This shift raises supply-chain risks and limits rerouting options for crude and refined products.
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They emphasized that Houthi capabilities could threaten Saudi Arabia’s Yanbu export hub and disrupt flows through Bab el-Mandeb. Even smaller facilities like Rabigh port may face pressure, potentially undermining Riyadh’s ability to bypass Hormuz. Around five million barrels per day of Saudi export capacity could be at risk, possibly adding $20 per barrel to oil prices.
Meanwhile, Aaron Hill of FP Markets said oil markets remain volatile, with Brent and WTI holding above $100.
Separately, Ole Hansen at Saxo Bank warned that tightening supply and declining “oil on water” buffers signal a transition toward a physical shortage-driven market.
