Mandeb Strait is in peril! Will oil prices have to rise?

Sina Finance News, March 30th, the past weekend, the Middle East conflict escalated further, and international oil prices surged over 3% at the opening on the 30th. The "culprit" pushing up oil prices is still the direction of the US-Iran conflict. On March 28th, local time, Houthi armed forces in Yemen announced their involvement in the Middle East conflict. This has put another important oil transportation chokepoint in the Middle East, the Strait of Mandeb, at risk for shipping safety. "This is the direct cause of today's surge in international oil prices," said Wu Yan, an oil analyst at Longzhong Information. This indicates that new spillover risks have appeared in the Middle East situation, driving market sentiment. Wu Yan predicted that if the intensity of Houthi attacks on Israel increases in the future and there is no apparent improvement in the US-Iran situation, international oil prices are expected to continue to rise, fluctuating upwards to around $110 to $125 per barrel. However, Wu Yan believes that in the short term, it may be difficult for international oil prices to reach the high levels seen during the Ukrainian crisis period, and it may be challenging to break through $130 per barrel. In the future, the situation in the Strait of Mandeb may become the key factor in whether oil prices can further increase. The Strait of Mandeb is an important passage connecting the Red Sea and the Gulf of Aden. A large number of global container ships and 12% of global maritime oil shipments as well as 3%-4% of liquefied natural gas shipments must pass through the Strait of Mandeb. Saudi Arabia uses this transportation route to export oil after the passage through the Hormuz Strait is blocked.