Houthis Advance on Bab al-Mandeb as Saudi Oil Route Comes Under Threat

On Thursday, Houthi forces advanced on the Bab al-Mandeb Strait, capturing the Red Sea port of Mocha and the islands of Perim and Zuqar. This strategic move puts the vital oil route under threat, with 6.2 million barrels of oil and refined products passing through daily, plus 80% of liquefied natural gas shipments to Europe. The Houthi advance has made the waters unsafe for shipping, causing a 60% drop in Suez Canal revenue, costing Egypt $7 billion.

Saudi Arabia has redirected over 70% of its crude exports through the Red Sea port of Yanbu, after Iran closed the strategic Hormuz Strait. Qatar is now negotiating long-term LNG purchases from U.S. suppliers, as its own exports have nearly ceased due to the Hormuz closure and Iranian damage to its Ras Laffan LNG complex. The war with Iran is expected to last beyond November's midterm elections, with Trump and advisors warning of an ongoing conflict.

Iran retaliated to U.S. strikes on its nuclear program by firing ballistic missiles at a Jordanian air base, damaging aircraft. The United Nations' International Atomic Energy Agency voted to refer Iran's nuclear file to the UN Security Council for the first time in two decades. Algeria severed diplomatic ties with the UAE over the country's support for various conflicts and movements, while Ukraine struck various Russian infrastructure, including naval vessels, fuel oil storage facilities, and a condensate processing plant.

Holtec, a U.S. company, is seeking a $10.2 billion valuation for its unstarted plant and newly built reactor. The energy sector saw deals, mergers, and acquisitions, including Holtec's listing on Nasdaq, Tamarack Valley Energy's merger with Headwater Exploration, and Enbridge's purchase of Tallgrass Energy's transportation business.