100 days of the Iran war: How global markets and the economy have been affected, in charts

DOHA, July 21. /TASS/. The naval blockade of Saudi Arabia announced by the Houthis of Yemen’s rebel Ansar Allah movement threatens the country’s energy infrastructure and key alternative routes for Saudi oil exports, Ahmed Nagi, a senior analyst on Yemen at International Crisis Group, a Washington-based think-tank, told TASS.

"As disruptions in the Strait of Hormuz increased, Riyadh relied increasingly on the East-West pipeline running to [the port of] Yanbu and the Red Sea," the expert said. If shipping through the Bab el-Mandeb Strait is disrupted Saudi Arabia would face increased security costs and reduced flexibility in export shipments, he added.

Nagi also pointed out that a simultaneous blockade of the Red Sea and the Strait of Hormuz would have consequences extending far beyond the country. "It would have a negative impact on global energy supplies and international trade as a whole," he said.

On July 20, the Houthis announced a naval blockade of Saudi Arabia, accusing the kingdom of years of plundering Yemen’s national wealth, referring to the country’s oil resources. On July 21, the Riyadh-led Arab coalition said it had begun taking measures to protect commercial vessels in the Bab el-Mandeb Strait.

Coalition Spokesman Turki al-Maliki stressed that any threat to shipping would be met decisively and forcefully, describing the rebels’ actions as maritime piracy.

The Houthis in Yemen have announced a blockade of Saudi Arabian shipping through Red Sea ports, including at the Bab el-Mandeb strait. The group, described as Iran-backed, stated the measure would target the top oil exporter following recent exchanges of fire.

Reports indicate this could add to existing maritime disruptions in the Strait of Hormuz linked to US-Iran confrontations.

A Reuters poll of economists conducted July 7-16 shows that most Gulf Cooperation Council economies are now projected to contract more sharply in the current year than estimated three months earlier, with median forecasts indicating declines of 8.1% for Kuwait and Qatar, 5.

1% for Bahrain, and 0.5% for the UAE. Saudi Arabia and Oman remain the only GCC economies expected to expand. The poll links the revisions to reduced export volumes through the Strait of Hormuz, higher freight costs, and weaker investor sentiment, even as oil prices have risen.

Initial reports indicate that a limited number of vessels transited the waterway during the first full day after the United States implemented a naval blockade of Iran. These observations have not been independently verified.