Crisis in the Bab al-Mandab Strait threatens global trade and energy markets
While Houthi attacks and developments in the strait create anxiety in global trade, experts state that a potential price increase could trigger historical shocks.
Recent developments in the Middle East and clashes around the Bab al-Mandab Strait are endangering the global supply chain and energy security.
Developments in the Strait and Anxiety
The Houthis seizing areas near the Bab al-Mandab Strait and their attacks targeting Saudi Arabia have escalated the tension in the Middle East to the highest level.
Threats Against Energy Lines
The Iran-backed Houthis targeting Saudi Arabia's strategic East-West energy pipeline is creating a major source of concern in global energy markets.
Oil Prices and the Risk of the 1970s
Economist Prof. Dr. Abdulkadir Develi pointed out that if oil prices reach the $120 level, the oil shock experienced in the 1970s could be repeated.