Why new Houthi threats in the Red Sea could spell trouble for global oil prices and inflation

Anton Petrus/Getty On Monday, the Iran-backed Houthi rebels in Yemen announced they would impose a “maritime embargo” on Saudi Arabia, in what could mark a dangerous escalation in the ongoing conflict between the United States and Iran. The Houthis have indicated they plan to target Saudi Arabian vessels travelling through the Bab el-Mandeb Strait, also known as the “Gate of Tears”, which connects the Red Sea and the Gulf of Aden. This escalation threatens to have a significant impact –…