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

Also in this section
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
18 February 2025
Booming crude production has been met with international caution after the UN’s damning assessment
17 February 2025
The thrum of the government’s comprehensive energy internationalism could be seen in the flurry of deals and partnerships at India Energy Week amid a mission to meet the economy’s insatiable appetite
17 February 2025
There is a growing feeling that it will not take much for heavy international hitters to follow the US out of the Paris Agreement