Houthis gains in Yemen lift Brent crude prices, impact U.S. fuel costs

On Friday, Iran-backed Houthi fighters seized the port city of Mokha, pushing Saudi-backed Yemeni forces out along a key stretch of the Red Sea coastline. The capture coincided with a U.S.-Iran exchange of fire in the Persian Gulf, driving Brent crude prices up to nearly $110 a barrel. Capital Economics notes the conflict raises the risk of further energy price hikes in the coming weeks. U.S. gasoline prices are up 34% from last year, averaging $4.28 a gallon, while diesel is up 61%.

Kpler data shows Saudi Arabia exported 3.2 million barrels a day last month, its lowest level in more than a decade. Saudi oil tankers now reroute through the Suez Canal to the Mediterranean and around Africa to reach Asian buyers. The Houthi takeover of Mokha follows attacks on four regions of southwestern Saudi Arabia, and the Saudi Energy Ministry reports more than 70 wounded. The conflict, 11 years after Saudi Arabia first led a coalition to roll back a Houthi takeover of Sanaa, continues to displace at least 18,500 people, according to the UN's International Organization of Migration.

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