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Iran Threat to Bab el-Mandeb Raises New Oil Market Risk

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Iran's threat to close the Bab el-Mandeb Strait could further disrupt global oil supplies by cutting off a key route that has helped offset losses from the closure of the Strait of Hormuz, CNBC reported Friday.

The Red Sea chokepoint has become increasingly important for Saudi crude exports to Asia, with oil and product shipments through the waterway rising to 7.2 million barrels per day in April from 3.9 million barrels per day in February, according to Kpler data cited by CNBC.

Iran's Revolutionary Guard threatened to close the strait this week if Israel does not halt military operations in Gaza and Lebanon.

Kpler analyst Matt Smith said such a move would represent a significant escalation and have a major impact on oil markets.

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