Iran conflict risks bleeding into Red Sea |
The US-Israel conflict with Iran is at risk of spiraling into new territory. Iran asked the Yemeni Houthis to shut down a key oil route through the Red Sea if the US targets its power infrastructure, according to Reuters. Houthi leaders are also threatening Saudi oil facilities if Riyadh gets involved in “comprehensive aggression” against Yemen. The Houthis accused the Saudis of bombing an airport in Yemen earlier this week, and fired missiles at the kingdom, breaking a four-year truce. Washington, meanwhile, approved a possible $2 billion arms sale to Saudi Arabia yesterday. As the US-Iran ceasefire breaks down, the escalation threatens global energy supplies: A 2019 Houthi attack temporarily knocked out more than half of Saudi Arabia’s oil production, about 5% of global supply. Diesel prices returned to $5 a gallon today and analysts expect US gas will return to $4 a gallon. — Lauren Morganbesser |