"Brent Crude Crosses $100 as Houthi Attacks Threaten Two Energy Chokepoints"
Bab al-Mandab Strait
chokepoint between Arabian Peninsula and Horn of Africa linking Red Sea to Gulf of Aden
Brent Crude
international oil benchmark priced in London, reflecting North Sea crude marginal cost
Global energy markets are structurally vulnerable to geopolitical shocks in West Asia because the region sits astride the world's most critical maritime chokepoints. The Strait of Hormuz, located between Iran and Oman, is the single most important oil transit route on the planet — approximately 20–21 million barrels per day pass through it, representing roughly one-fifth of global oil consumption. There is no cost-equivalent alternative for Gulf exporters, making it the central lever of asymmetric deterrence in any US-Iran confrontation.
The current escalation is rooted in decades of structural antagonism between the United States and Iran, tracing back to the Islamic Revolution of 1979 and the subsequent collapse of diplomatic ties. The Joint Comprehensive Plan of Action (JCPOA), concluded in 2015 among Iran and the P5+1 grouping, offered a diplomatic off-ramp by capping uranium enrichment in exchange for sanctions relief. The US unilaterally withdrew from the JCPOA in 2018, reimposing a 'maximum pressure' sanctions regime. Iran progressively exceeded enrichment limits in response, and the breakdown of a recent temporary ceasefire has now reignited hostilities — pushing energy markets into fresh turbulence.
The Houthi movement in Yemen, backed by Iran, has emerged as a significant non-state actor capable of disrupting global shipping. Operating from Yemen's western coastline, the Houthis command the approaches to the Bab al-Mandab Strait — a second critical chokepoint that connects the Red Sea with the Gulf of Aden and, by extension, the Indian Ocean with the Suez Canal route to Europe.
The Bab al-Mandab Strait, located between the Arabian Peninsula and the Horn of Africa, historically handled approximately 4.1 million barrels of crude oil and refined petroleum products per day, representing roughly 5% of global seaborne oil flows. While this is substantially lower than Hormuz's share, its strategic importance has grown considerably as Gulf exporters — particularly Saudi Arabia — have sought to reduce dependence on Hormuz by routing exports through the Red Sea.
Saudi Arabia's East-West Pipeline is the key infrastructure enabling this bypass. It transports crude from the Abqaiq processing facilities — the world's largest oil processing complex — to the Yanbu export terminal on the Red Sea coast, allowing a significant share of Saudi exports to reach international markets without transiting Hormuz. This pipeline had been positioned as a resilience measure against Hormuz disruption. However, Houthi attacks on Saudi tankers in Bab al-Mandab now threaten to close this alternative route simultaneously, creating a scenario where both major Gulf export corridors face disruption at once. …
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
Consider the following statements:
Statement-I:
Recently, Venezuela has achieved rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II:
Venezuela has the world's largest oil reserves.
Which one of the following is correct in respect of the above statements?
Consider the following statements regarding the Bab al-Mandab Strait:
1.It connects the Red Sea with the Gulf of Aden.
2.It historically handles approximately 20% of global seaborne oil flows.
3.It is located between the Arabian Peninsula and the Horn of Africa.
Which of the statements given above is/are correct?
Which of the following correctly describes Saudi Arabia's East-West Pipeline?
With reference to global oil benchmarks, consider the following statements:
1.Brent Crude is the international benchmark reflecting North Sea crude prices.
2.WTI (West Texas Intermediate) typically trades at a premium over Brent Crude.
3.Both Brent and WTI are classified as light, sweet crude oils.
Which of the statements given above is/are correct?
Which of the following best explains why a rise in global crude oil prices to $100 per barrel is particularly consequential for India's macroeconomic stability?
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