Saudi Crown Prince Mohammed bin Salman arrived in Cairo on Tuesday ahead of meetings with Egyptian President Abdel Fattah al-Sisi, as the kingdom vowed to respond to attacks by Yemen's Houthis. The regional powers are expected to discuss the threat posed by Houthi control over the Bab al-Mandab Strait, a key shipping route vital to both Saudi oil exports and Egypt's Suez Canal revenues. Al-Qahera News, which is close to Egyptian intelligence services, reported the crown prince's arrival, and Riyadh's foreign ministry said Sisi received him for a 'working visit'.
Last week, the Houthis seized control of Yemen's Red Sea coast and the Bab al-Mandab Strait, threatening the last direct route to Asian markets for the world's largest oil exporter. Bab al-Mandab, the southern gateway to the Red Sea and Egypt's Suez Canal, has become essential for Saudi oil exports this year, with the Strait of Hormuz blocked by the US-Iran war. Since the Houthis declared a naval blockade on the kingdom in July, Saudi Arabia has relied more heavily on Egypt to export oil, chiefly through its overland Sumed pipeline.
Crude is transported from the Saudi Red Sea port of Yanbu to Egypt's Ain Sokhna, and carried overland through the pipeline to the eastern Mediterranean at Sidi Kerir. But a recent drone attack, which Riyadh said was launched from Iraq, forced it to shut the East-West pipeline that feeds Yanbu, pushing global oil prices above the $100 threshold. Disruption to Bab al-Mandab could land Egypt with heavy losses too, with Cairo reliant on Suez Canal tolls for crucial foreign revenue.
FAQ
- **Why is the Bab al-Mandab Strait important?** The Bab al-Mandab Strait is a critical maritime chokepoint connecting the Red Sea to the Gulf of Aden, and is a vital route for global shipping and oil exports. It is particularly important for Saudi Arabia, as it provides a key route for oil exports to Asian markets. For Egypt, the Strait is crucial as it leads to the Suez Canal, a major source of revenue for the country. - **What are the implications of Houthi control over the Strait?** Houthi control over the Bab al-Mandab Strait poses a significant threat to global oil supplies and maritime security. It could lead to increased oil prices and disrupt trade routes, affecting both Saudi oil exports and Egypt's Suez Canal revenues. The situation also exacerbates regional tensions and could lead to further military confrontations. - **How is Saudi Arabia responding to the Houthi threat?** Saudi Arabia is taking several measures to respond to the Houthi threat, including increasing reliance on alternative routes for oil exports, such as the overland Sumed pipeline through Egypt. The kingdom is also likely to discuss military and diplomatic strategies with Egypt to counter the Houthi influence in the region. - **What are the economic impacts on Egypt?** The economic impacts on Egypt are significant, as the Suez Canal is a major source of foreign revenue. The canal's revenues have already been affected by Houthi attacks on ships since 2023, with losses estimated at $11 billion. Further disruptions could exacerbate Egypt's economic challenges.
