Houthi Advances in Red Sea, Threatening Middle East Oil Route

The Iran-backed Houthi group has intensified attacks on Yemen's Red Sea coast and is attempting to consolidate control of the Bab al-Mandab Strait. This route is a vital route for Saudi Arabian oil exports and global trade.

Iran on Friday (September 11) expressed its support for the Houthis and the tightening of the blockade on Yemen. The Iranian Foreign Ministry also called for the immediate resumption of dialogue, while condemning pressure, including those involving Israel and the United States.

If the Houthis gain full control of the Bab al-Mandab Strait, Iran's position in the tensions with the Trump administration could potentially escalate. Iran has also reportedly restricted maritime traffic through the Strait of Hormuz during its ongoing war with the United States.

Since the Hormuz blockade began in late February, the Bab al-Mandab has become an increasingly important waterway for global shipping. This route plays a significant role in Saudi oil exports, especially as the Persian Gulf trade route faces increased risks of disruption.

In recent days, the Houthis have launched ground offensives and seized several key port cities along the Red Sea, including Mokha on Thursday. Saudi-backed Yemeni peacekeepers have reportedly withdrawn, while the Yemeni government hopes for a military response from the United States.

Newsmaker Analysis: The rapid advance of the Houthis along the Red Sea coast adds new risks to global energy markets. If the Bab al-Mandab is disrupted simultaneously with tensions in the Strait of Hormuz, the oil market could face dual pressure from two strategic shipping lanes. This situation has the potential to maintain high geopolitical risk premiums, push oil prices higher, and exacerbate concerns about energy inflation in global markets. (asd)