Geo Chen
· Fidenza Macro
· March 30, 2026 at 07:25
· ⏱ 4 min read
| Read on Substack ↗
Summary
The author discusses the market sell-off following news that the Houthis have joined the war in the Middle East. This development is presented as a significant risk to global markets due to the potential for a blockade of the Bab al-Mandab Strait, which would severely disrupt oil and container shipping.
•A historically reliable trading strategy has been to short the market on Wednesday and cover on Monday.
•Equity markets sold off on Friday due to news of Houthi involvement in the Middle East conflict.
•The Houthis could disrupt the Bab al-Mandab Strait, a critical chokepoint for 9 mb/d of oil and 10% of global shipping.
•A blockade of this strait could cause calamitous disruption to global energy and shipping markets.