Market fundamentals mute Red Sea price impact

But the crude, product, LNG and tanker markets are all still facing significant disruption

Yemen’s Houthis continue to threaten and interdict shipping in the southern Red Sea and Gulf of Aden in response to the ongoing war in Gaza and the subsequent UK-US strikes on Yemen itself. This has severely impacted vessel traffic through the Suez Canal and Bab el-Mandeb strait chokepoints, resulting in significant shifts in commodity flows. Freight markets have seen the most disruption, while other sectors have not felt such a pronounced impact, at least on pricing. Crude and LNG prices have seen only relatively muted responses to the crisis, while the products markets have been impacted to a greater degree.   The Bab el-Mandeb is a key chokepoint in global markets, with consultancy BMI no