DUBAI/NEW DELHI: As the Iran-Israel conflict escalates, Yemen’s Houthi rebels have opened a second maritime front by threatening the Bab-el-Mandeb Strait. This strategic move, coinciding with the existing pressure on the Strait of Hormuz, effectively creates a dual “chokehold” on the world’s most vital energy corridors. Following their recent missile strikes on Israeli military sites, experts warn that the involvement of the Iran-backed militia marks a “deeply concerning escalation” that could send global crude oil prices skyrocketing past the $150 per barrel mark in the coming months.
For India, the implications are severe and multifaceted. While nearly 50% of India’s crude imports transit through Hormuz, the disruption at Bab-el-Mandeb threatens LNG supplies from Qatar and re-routed Saudi crude from the Yanbu port. Beyond energy, the strait handles nearly 20% of global container traffic, including food and machinery.
Re-routing vessels around the Cape of Good Hope has already driven freight rates for large carriers to historic highs, with some deals reportedly touching $700,000 per day. This logistics crisis is expected to fuel domestic inflation in India, putting immense pressure on the government which recently slashed excise duties on petrol and diesel to shield consumers from an uncomfortable threshold. (NDTV)
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