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Potential Red Sea Route Disruption Could Push Oil Even Higher Amid Houthi Threat
As the Middle East conflict continues to disrupt energy flows via the Strait of Hormuz, RBC Capital Markets strategists are watching for any signs that the Houthis may enter the fray, imperiling the alternative Red Sea export route.
For now, the Houthis have stayed on the sidelines, unlike in 2019 when they targeted the East-West pipeline and joined the Iranian strike on Abqaiq following the termination of exemptions for importers of Iranian oil by the U.S., the commodity strategy team said.
“If the Yemeni group does become an active participant, we think it would materially alter risk perceptions about the Red Sea exports,” they wrote.
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