Whats Going on with Shipping
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The Double Chokehold: Houthis Choke the Bab el-Mandeb to Saudi Oil
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July 24, 2026
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13:56Now PlayingThe maritime crisis in the Middle East intensifies as the Houthis announce a formal blockade against Saudi Arabia, targeting two major tankers in the Bab el-Mandeb. This episode analyzes the strikes on two Saudi tankers, the immediate spike in war risk insurance, and how this new front in the Red Sea—combined with the ongoing closure of the Strait of Hormuz—is creating a global energy chokehold.
We also look at the impact on Saudi oil exports from Yanbu, the role of Russian and Chinese shipping in the region, and the growing dangers of "dark fleet" tankers like the Carolyn Benzeni off the coast of Oman. As freedom of the seas faces its greatest challenge in decades, what does this mean for global trade and the price of oil?
Houthi Blockade Analysis: A look at the recent attacks on Saudi tankers Encilia and Layla and the Houthi declaration of a maritime embargo against Saudi Arabia.
The "Double Chokehold": How simultaneous pressure on the Strait of Hormuz and the Bab el-Mandeb is threatening critical Saudi oil pipelines and global supply lines.
Economic Ripple Effects: The impact of skyrocketing war risk insurance—jumping from 3% to 7.5%—and what this means for the cost of moving goods through the region.
Inefficient Alternatives: Why rerouting oil through the Suez Canal involves complex ship-to-ship transfers and how this mirrors the logistical challenges currently faced by Russian oil exports.
The Dark Fleet Threat: The environmental and legal risks highlighted by the breaking up of the Carolyn Benzeni off the coast of Oman.
Freedom of the Seas: A broader discussion on the challenges facing global naval forces and the shifting dominance in the world's shipbuilding market.
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Twitter: @mercoglianos
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Email: mercoglianosal@gmail.com
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