Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenuSatellite view of the Bab el-Mandeb Strait is a vital trade route linking the Red Sea, Gulf of Aden, Arabian Sea, Suez Canal, and Mediterranean.Gallo Images | Orbital Horizon | Getty Images

Iran’s Houthi allies in Yemen on Monday declared a maritime embargo of Saudi Arabia.

The militants have repeatedly threatened to close the Bab el-Mandeb Strait, a chokepoint for commercial ship traffic connecting the Red Sea to the Gulf Aden and global markets.

Riyadh has diverted million of barrels of oil per day to an export terminal on the Red Sea as the U.S.-Iran war has severely disrupted tanker traffic through the Strait of Hormuz.

A closure of Bab el-Mandeb would block in those barrels, exacerbating the oil supply disruption triggered by the disruption in Hormuz.

Crude oil prices were little changed after the announcement.

This is breaking news. Please refresh for updates.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

About The Author

admin

See author's posts