Iran and its allies are attempting to intensify economic pressure on the United States, by threatening the alternative energy route through the Red Sea and the Bab el-Mandeb Strait, according to international relations expert Demosthenes Dimopoulos, speaking to CNA, in light of the escalation of Houthi activity in the region.
Speaking to CNA on Saturday, Mr. Dimopoulos noted that this development is “obviously alarming and extremely dangerous” for the situation in the Middle East, as it directly jeopardizes one of the key alternative routes used primarily by Saudi Arabia and the Gulf states to export oil and other energy products.
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The Houthis attacked airports in Saudi Arabia
According to him, this development could lead to a further increase in oil and natural gas prices, as the risks to shipping and the transport of energy products through the Bab el-Mandeb Strait increase.
“This has the immediate effect of increasing the risk in the Bab el-Mandeb Strait as well; we may see a further spike in oil and natural gas prices as a result of these developments in the coming days,” he said.
At the same time, Mr. Dimopoulos noted that Saudi Arabia is under significant pressure, as it is “one of the key players in the region” affected by these developments, recalling that in the past it had unsuccessfully attempted to neutralize the Houthis in Yemen.
The international relations expert linked the developments in the Red Sea to the broader effort by both sides of the conflict to increase the economic cost for the opposing side. As he noted, oil prices had so far remained at “relatively manageable levels,” as the Red Sea and the Bab el-Mandeb Strait remained relatively open.
He added that if the Houthis manage to maintain control of the area and efforts to dislodge them fail, oil prices may rise further.
Such a development, he added, would put additional pressure on the United States to find a solution.
Mr. Dimopoulos assessed that the Houthis, “obviously with Iran’s approval or encouragement,” are threatening the Bab el-Mandeb Strait with the aim of intensifying the economic pressure being exerted on the region.
As he said, the strategy of both Iran and the U.S. since June has been to increase the cost of continuing the war for the other side, in order to force it to back down due to the “unbearable” economic costs, as he described them.
Referring specifically to the energy implications of these developments, Mr. Dimopoulos said that “The United States, through its naval blockade, has essentially frozen—it has halted—Iran’s seaborne oil exports.”
“Iran, in turn, through its attacks on other Gulf countries, as well as by closing the Strait of Hormuz—since now only six to eight ships are passing through, whereas before the war, 125 used to pass through. This has driven up prices and is causing serious concern and economic strain for the Americans, pushing them to end the war,” he said.
Regarding the implications for Cyprus, Mr. Dimopoulos noted that the Houthis’ redeployment does not substantially alter their operational capabilities with regard to potential targets in Cyprus or elsewhere. The main impact, he said, concerns navigation and the movement of ships through this particular strait.
“Just as everyone who relies on this route is affected—and it depends on the ships passing through this strait, whether to transport goods or anything else— Cyprus, Greece, and any other country are also affected,” he said.
“Essentially, Iran and its allies are trying to intensify the stranglehold on the global economy, to deprive other players in the region of this alternative energy route, in order to intensify the pressure,” he concluded.
Source: CNA
