DID Press: A new report by CNBC warns that threats to close the strategic Bab el-Mandeb Strait have heightened concerns over the vulnerability of global energy markets, particularly as the route has become increasingly important for oil shipments following disruptions in the Strait of Hormuz.
According to the report, Bab el-Mandeb has emerged as a critical export corridor for Saudi oil bound for Asian markets. With constraints on flows through Hormuz, large volumes of crude transported via Saudi Arabia’s East–West pipeline are shipped through the Red Sea and pass through Bab el-Mandeb.
Data cited from Kpler indicate that oil and petroleum product exports through the strait reached 7.2 million barrels per day in April, nearly double the 3.9 million barrels recorded in February.
Analysts warn that any disruption to shipping in the area could have significant consequences for global supply chains and energy prices. Market sensitivity was reflected in a sharp rise in U.S. crude prices following reports of heightened regional tensions, although prices later eased after announcements of a ceasefire.
Matt Smith of Kpler reportedly said that any closure of Bab el-Mandeb would severely affect Saudi oil supplies to Asia and could trigger an unprecedented escalation in energy markets.
The report also notes that security concerns extend beyond the strait itself. Regional tensions involving Iran, the United States, Israel, Lebanon, and Yemen continue to fuel uncertainty, while shipping companies remain cautious about potential threats to commercial vessels operating in the Red Sea.
Analysts further argue that even a limited number of attacks on shipping could significantly disrupt traffic through Bab el-Mandeb, one of the world’s most important maritime trade routes.