25% OF GLOBAL OIL SUPPLY IS ABOUT TO BE COMPLETELY FROZEN.
While the world is watching the Strait of Hormuz, a second massive energy chokepoint is now under threat of a total shutdown.
Iran’s state media reports that the Houthis in Yemen are preparing to officially join the war against the US and Israel.
This is a nightmare scenario for global energy. The Houthis have already proven they can paralyze the Red Sea with drone and missile strikes.
The Bab al-Mandab Strait is the world’s 4th-largest shipping chokepoint, handling 12% of all seaborne oil.
If this passage is closed, another 6 million barrels of daily oil supply will be halted immediately.
When you add this to the 20 million barrels already trapped in the Strait of Hormuz, the total offline capacity hits 25 million barrels per day.
That is 1 out of every 4 barrels of oil produced on the entire planet.
The global economy cannot function with a 25% supply cut; we would see an immediate, catastrophic spike in fuel prices and inflation.