Houthi attacks THREATEN Middle East oil flows: ‘ABSOLUTE STRUGGLE,' expert says

• Strait of Hormuz oil exports reached a seven-day average of 10 million barrels per day, about 75% of pre-war levels, as of October 4.
• Saudi Arabia has reverted to using the Strait of Hormuz after its East-West pipeline was blown up by Houthi attacks, though the pipeline is now back up and running.
• Oil tanker rates for crude transport from the Middle East to Asia have surged from $30,000/day in January to $1.2 million/day, due to increased risk and inefficient ship-to-ship transfers and rerouting around Africa.
• Geopolitical risks from Houthi/Iranian actions continue to threaten energy infrastructure and shipping, with potential for increased disruption leading up to the mid-term elections.

Middle East crude oil exports are maintaining volumes despite Houthi attacks and Iranian threats, with Saudi Arabia utilizing alternative routes and pipelines. However, these disruptions have led to significant increases in oil tanker rates and created an inefficient market, driving up energy prices and benefiting shipping and refining stocks.