Yemen’s Houthi rebels’ latest threat could prove to be a major bullish catalyst for the oil market if executed. According to latest reporting from Yemen, Houthi leader Abdel-Malek al-Houthi said his rebel alliance would begin attacking Saudi oil tankers should the Kingdom begin an offensive against the key Yemeni port of Hodeidah, “We could target Saudi oil tankers and we could do anything, we have not done this before….. Today the port of Hodeidah is being threatened and we cannot turn a blind eye to that…If the Saudi regime and with a green light from the U.S. attack Hodeidah then we have to take steps that we haven’t taken before.” Two years of civil war between Houthi rebels and Saudi-backed President Abdrabbuh Hadi has left Yemen’s economy wrecked and led to a severe humanitarian crisis in the country.
Some analysts have pointed out that Houthis may not have the technical capability to execute such a threat but Iran backed Houthis may procure the necessary equipment from Saudi Arabia’s arch rival Iran. It is believed that the Hodeidah port is being used to smuggle weapons from Iran and charge duties to passing ship illegally to fund the war.
