Key facts
- Yemen's Houthi rebels have seized control of nearly all of the country's Red Sea coastline.
- The Bab al-Mandab Strait, a key chokepoint for global trade, is now under Houthi control.
- The Houthis have intensified attacks on energy facilities in Saudi Arabia, the world's biggest oil exporter.
- Saudi Arabia was forced to temporarily shut down a crucial oil pipeline after a drone attack.
- The escalation has contributed to a recent surge in oil prices, which rose to $110 on September 15.
- Experts warn that a prolonged shutdown of Saudi Arabia’s critical East-West pipeline or a Houthi attempt to block the Bab al-Mandab Strait could send shockwaves around the world.
Yemen's civil war has escalated, with Houthi rebels seizing nearly all of the country's Red Sea coastline, including the Bab al-Mandab Strait, a critical chokepoint for global trade. This development has intensified attacks on energy facilities in Saudi Arabia, the world's largest oil exporter, forcing Riyadh to temporarily shut down a crucial oil pipeline following a drone attack.
The conflict's flare-up has contributed to a recent surge in oil prices, with Brent crude reaching $110 a barrel on September 15. Experts warn that a prolonged shutdown of Saudi Arabia’s East-West pipeline or a Houthi blockade of the Bab al-Mandab Strait, through which around 6% of the world's seaborne oil passes, could significantly disrupt global energy markets.
Even before the recent escalation, energy markets were already unsettled by the conflict involving Iran and the US in the Persian Gulf, which has effectively closed the Strait of Hormuz. Gregory Brew, an analyst at Eurasia Group, noted the combined pressure on international oil markets from both the Saudi-Houthi and US-Iran conflicts. Goldman Sachs has cautioned that oil prices could reach $120 a barrel if these conflicts persist.
Scores have been killed and over 120,000 people displaced by the Houthi offensive, which captured the port city of Mokha and islands in the Red Sea. Saudi Arabia has conducted air strikes against Houthi targets, while the Houthis have launched drones and missiles at the kingdom. Riyadh has sought military support from the US, but President Donald Trump has reportedly rebuffed these calls. US officials met with Houthi leaders in Oman on September 15, with reports indicating the Houthis have assured Washington they will not block the Bab al-Mandab Strait or attack international shipping, except for Saudi vessels.