Houthi Strait Blockade Pushes Oil Past US$100
Houthi attacks on Red Sea routes push Brent crude past US$100, spiking global shipping costs.
01/12Houthi forces block key Middle East shipping routes
Photo: CC0 via OpenverseHouthi attacks on the Red Sea have triggered a global shipping crisis, pushing energy prices to their highest level since May. - 02/12
US$106.65 Brent crude closing price Brent crude closes at US$106.65 As of 12 October, Brent crude closed at US$106.65 per barrel, marking its first sustained rise above US$100 since May. - 03/12
US$1.2M VLCC daily rate VLCC daily rate hits US$1.2M The daily rental rate for a Very Large Crude Carrier (VLCC) from the Middle East to Asia has hit a record US$1.2M. - 04/12
Shipping costs jump from US$50,000 to US$1.2M VLCC daily rates previously averaged US$20,000 to US$50,000 over the last year, but have now surged to US$1.2M. - 06/12
Key routes affected by the blockade Bab el-Mandeb Strait Red Sea shipping lanes Middle East to Asia routes
The blockade disrupts several critical global trade and energy supply routes. - 07/12
Myth The crisis only affects oil prices. Fact The Bab el-Mandeb Strait carries 12% of global container trade and 30-40% of global fertilizer raw materials. It is not just about oil Many think the crisis only affects energy prices, but it also impacts global trade and food security. - 08/12
Monthly statement How shipping costs affect your wallet Shipping cost increase Up to 24x Impact on imported goods Higher retail prices Global food security 22M at risk e.g. A 100% increase in shipping costs can add RM5 to RM10 to the price of a single imported appliance. - 09/12
What to check in your budget Imported electronics Food and grocery prices Fuel and transport costs
Keep an eye on these items as shipping costs rise. 
10/12Photo: Wyncliffe / CC0 1.0Why the Bab el-Mandeb Strait matters The strait carries 12% of global container trade, 30% of Asia-Europe trade, and 30-40% of global fertilizer raw materials. - 11/12
Global food security at risk The UN warns the conflict could push 22 million people back into food insecurity. - 12/12
Bottom line Plan for higher import costs With shipping costs at record highs, expect higher prices for imported goods and fuel. Adjust your budget accordingly.
Questions people ask
Why is the oil price rising?
Houthi attacks on the Red Sea have disrupted shipping routes, increasing the cost of transporting oil and other goods.
How does this affect Malaysian consumers?
Higher shipping costs lead to increased prices for imported goods, including electronics, food, and fuel.
What is the Bab el-Mandeb Strait?
A key shipping route between the Red Sea and the Gulf of Aden, carrying a significant portion of global trade.
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