One strait was already expensive. They just leaned on the other.
Reuters, Sept. 10: Iran-aligned Houthis seized Mocha, Yemen, on Thursday and advanced down the Red Sea coast to the Hanish islands, Yemeni government military sources said. That is leverage on Bab el-Mandeb — the southern gate of the Red Sea, the route Saudi crude has used since the Iran war pinched Hormuz. Houthi-run coordinators: Red Sea navigation is “safe” except for Saudi vessels. Spokesperson Mohammed Abdulsalam: operations are defensive and stop when attacks on Yemen stop.
Saudi civil defence: emergency alerts in Khamis Mushait for the fourth time in 24 hours. Pakistan delivered a Saudi warning to Tehran to rein in the Houthis; a senior Iranian official told Reuters Iran’s answer was “Iran does not control the Houthis.” Reuters: just seven vessels transited Hormuz on Wednesday, half the 10-day average. Wednesday’s tit-for-tat was Iran saying it hit 10 ships after the U.S. sank five Iranian tankers.
Oil: Reuters said Brent jumped as much as 4% to $105. Yahoo, 1:01 p.m. ET: Brent $106.80, WTI $101.37. Not a cash close. Trump’s “after the election” line is in the same wire. It does not reopen Mocha.
What this means for you
If you drive, the second chokepoint is why $100 became $106. If you needed a peace deal, there is still no text. If you needed Hormuz, seven ships is not a reopening. Not investment advice.
Bottom line: Mocha. Bab el-Mandeb. $106.80 Brent at 1:01. The veto is still New York. The pump is here.
GLHR NEWS explains the news. Not investment, tax, or trading advice. Do your own work before you act.
