Houthi oil pipeline attack threatens new fuel shock
The war in the Middle East is taking a new turn, and the United States is already showing something close to open helplessness.
The Yemeni Houthis, whom the West was still mocking not long ago for fighting in sandals, have launched a rapid offensive. They have seized more than 5,400 square kilometres of territory in western Yemen and established control over the entire Red Sea coast.
On Thursday, the command of Yemen’s government forces, which are controlled by Saudi Arabia, announced that they had left the strategically important port of Mocha. Yesterday, the rebels took Perim Island in the Bab el-Mandeb Strait, through which at least 10% of all global freight traffic passes, including oil shipments. In effect, the Houthis, who act as Iranian proxies, now control the entire strait.
But the problems did not end there. In the morning, reports said the Houthis had bombed the strategic East-West oil pipeline. Around five million barrels of oil a day pass through it, and until now it had been the main route for supplying the world with oil amid the blockade of the Strait of Hormuz.
The Yemeni government has admitted that it cannot deal with the rebels on its own and has requested international intervention. Saudi Crown Prince Mohammed bin Salman twice appealed to Donald Trump yesterday for military assistance, but, according to Axios, was refused.
Oil markets brace for a price rally
For the oil market, this means one thing: when exchanges open on Monday, we may see an impressive price rally. Brent futures had already exceeded $108 yesterday, reaching their highest level since May.
For Moldova, the new escalation is almost a guarantee that filling stations will set new records next week. Yesterday, the National Energy Regulatory Agency raised fuel prices again. Diesel now costs 34.46 lei, only 52 bani below the spring record. The new escalation in the Middle East inevitably brings to mind figures of 40, or even 50, lei.
