Middle East: Oil surges as Gulf tensions escalate

Yemen’s Iran-backed Houthi rebels say they attacked two Saudi oil tankers in the Red Sea on Thursday, marking their first reported strike on a vessel since announcing a blockade of Saudi-linked shipping through the Bab el-Mandeb Strait earlier this week.

The Houthis say the move is retaliation for Saudi Arabia’s blockade on Yemen and a recent strike on Sanaa’s international airport.

The escalation adds further pressure to global shipping as the Strait of Hormuz remains closed and Brent crude prices hit their highest level since May.

Morgan Ayre and Charlotte Lam explain why the Bab el-Mandeb Strait matters.

Morgan Ayre and Charlotte Lam report. ...