Prediction Markets Sound the Alarm: Odds of a Bab el-Mandeb Closure Surge Amid New Blockade Threats

Houthi rebels in Yemen have declared a maritime embargo against Saudi Arabia, citing retaliation for a blockade on Yemen and attacks on Sanaa International Airport. This action seeks to disrupt Saudi oil exports under an eye for an eye principle. Consequently, prediction markets are reporting a surge in the odds of a naval blockade affecting the Bab el-Mandeb, a critical waterway that handles 12% of global trade and millions of oil barrels daily.