The Red Sea lies Asia's other big Middle East fear

The Red Sea lies Asia's other big Middle East fear

Crude oil shipments through Bab el-Mandeb, another critical strait in the Middle East that connects the Red Sea and Indian Ocean, have surged since Iran effectively closed off the Strait of Hormuz.

But with Yemen's Iran-aligned Houthis joining the conflict with a threat to block off the key shipping route, Bab el-Mandeb could become another chokepoint for Asia's energy trade.

In March, more than 4 million barrels of crude oil per day transited through the strait, whose Arabic name means the Gate of Grief, a surge from just under 3 million per day a month earlier and the highest rate since October 2023, according to commodities data firm Kpler. Of the March oil flows, more than 90% went to Asian countries, with India and China taking the bulk.

Following the U.S.-Israeli attacks on Iran, Asia has been gripped by energy supply fears. Countries like Indonesia, Vietnam, Malaysia and Pakistan have less than 30 days' worth, an analysis by research firm BMI shows.