Oil Routes Face New Threats as Middle East Conflict Spreads

Perim Island, Yemen — Six months after U.S. and Israeli attacks on Iran, fighting in the Middle East is continuing to grow. The conflict is threatening routes used to carry oil and gas around the world.

Iran has restricted travel through the Strait of Hormuz, a narrow waterway that carried about 20% of the world’s oil and gas before the war. Oil producers tried using other routes, including the Red Sea and Saudi Arabia’s East-West Crude Oil Pipeline.

Now those alternatives are also under pressure. A temporary U.S.-Iran peace deal ended last month, and attacks on ships have increased. The United States has moved some ships through the Strait of Hormuz, but much less oil is passing through than before.

In Yemen, the Iran-backed Houthi rebel group has been fighting Saudi Arabia and Yemen government forces. The Houthis attacked Saudi oil tankers after Saudi Arabia struck an airport in Yemen’s capital in July. Both sides have since launched drone and missile attacks.

By last Friday, the Houthis had taken control of Yemen’s Red Sea coast, including Perim Island and the port city of Mocha. Their control of this coastline could allow them to limit ship traffic in the Red Sea.

Iran-backed militants in Iraq also launched drones at Saudi Arabia’s East-West pipeline last Thursday and Friday. The damage forced Saudi Arabia to shut down the pipeline.

These events could make it harder to move oil out of the region. People are watching to see how Saudi Arabia responds and whether the conflict grows further.