Brent crude exceeds $100 as Houthi Red Sea advances delay Asia oil shipments

Brent crude prices surged past $100 a barrel on Friday, 11 September, as escalating conflict in the Red Sea threatened to add 30 days to oil shipments bound for Asia. The disruption follows the capture of the Yemeni port of Mocha and the strategic Perim Island by Houthi militants, effectively tightening control over the Bab Al Mandab Strait. Shipping routes forced into 30-day detour The Bab Al Mandab Strait serves as a critical gateway connecting the Red Sea to the Indian Ocean. With the strait increasingly volatile, tankers are being forced to avoid the Suez Canal route entirely. According to shipping data cited by CNN, vessels must now travel north through the Suez, navigate the Mediterranean, and circumnavigate the African continent to reach Asian markets. This detour adds approximately one month to transit times and significantly increases costs for fuel, freight, insurance, and crew wages. The crisis has severely impacted Saudi Arabia’s export capacity. At its peak, the Red Sea port of Yanbu exported 4.5 million barrels per day (bpd) as an alternative to the Strait of Hormuz. Richard Bronze, co-founder of Energy Aspects, stated that while 3 million bpd previously moved south through Bab Al Mandab, that volume collapsed to just 400,000 bpd by August and has fallen further following the latest military escalations. Market reaction and price volatility Oil markets reacted sharply to the deteriorating security situation. Brent crude peaked above $109 per barrel on…