CNN: Oil prices climb after Yemen announces naval blockade on Saudi shipping

WASHINGTON, July 21 (YPA) – Global oil prices rose on Tuesday following Yemen’s announcement of a maritime blockade targeting Saudi shipping, according to CNN.

Brent crude, the international benchmark, climbed 1.8% to $90.85 per barrel, while U.S. West Texas Intermediate (WTI) also gained 1.8%, reaching $83.97 per barrel.

CNN reported that Brent crude has gained nearly $20 per barrel since the start of the month, driven by escalating tensions around the Strait of Hormuz.

The report noted that Saudi Arabia had previously increased crude exports through its Yanbu terminal on the Red Sea to about 4 million barrels per day in an effort to reduce reliance on the Strait of Hormuz, citing energy consultancy Rystad Energy.

According to Jorge Leon, Senior Vice President at Rystad Energy, vessel-tracking data indicates that around 2.5 million barrels per day of those exports pass south through the Bab al-Mandab Strait, making the alternative route vulnerable to any potential disruption.

Separately, the International Energy Agency (IEA) warned that global energy security could deteriorate further unless the Strait of Hormuz is reopened, saying continued tensions pose a significant risk to oil market stability.

AA