Analyst: If Houthi attacks escalate, it may force Saudi Arabia and other oil-producing countries to cut production together.

BlockBeats news, on March 28, energy analysts warned that if the Houthi militia in Yemen resumes attacks on Red Sea shipping, the oil market could fall into even greater turmoil. Renewed attacks could cut a significant amount of oil from global supply and drive up oil prices. Saudi Arabia has been shifting as much crude oil as possible from the Persian Gulf to its Red Sea port of Yanbu, with shipments primarily heading to Asia. While this has not fully offset the amount of oil that cannot pass through the Strait of Hormuz, it has helped limit the rise in global oil prices.

Analysts stated that if Houthi attacks make it too dangerous for tankers to approach Yanbu, then as much as millions of barrels of crude oil per day could be stranded in the Middle East. At that point, Saudi Arabia may be forced to cut production along with Kuwait and Iraq.