Turmoil in Yemen As a Long-Term Oil Market Factor

... seriously affect oil prices. Recent reports suggest that a decision on sending ground forces to Yemen has been made , but the exact date remains unknown. A ground operation will likely last longer than Operation Decisive Storm, may reduce production of Yemeni oil to zero, and may provoke a harsh response by Iran. Tehran’s reaction is hard to predict: it could opt for covert support to the Houthis and refrain from direct involvement because of ongoing nuclear talks. Alternatively, Iran could go further and block the strait of Hormuz, thus preventing most of GCC’s oil transit. Regardless of Tehran’s strategy, the impact of a ...