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Sanjoy Paul, Associate Professor in Operations and Supply Chain Management, UTS Business School, University of Technology Sydney

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.

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