Houthi Advance Threatens Global Trade and Oil Prices

Fri Sep 11 2026 19:25:43 GMT+0000 (Coordinated Universal Time)

Yemen's Houthi fighters seize land near the Bab al‑Mandab, jeopardizing Red Sea shipping routes and Saudi oil exports.

Fighters from the Iran-backed Houthi group have captured territory close to the Bab al‑Mandab Strait, a critical gateway linking Asia and Europe. While the Houthis claim they pose no threat to international shipping, they have vowed to target vessels from Saudi Arabia. Saudi Arabia depends heavily on the Red Sea corridor for oil exports after the Strait of Hormuz was closed by the US‑Israel war. The conflict has displaced over 46,000 Yemenis, according to the UN. The move raises concerns that air and shipping delays could spike oil prices and strain global trade flows.

Houthi Advance Threatens Global Trade and Oil Prices

Yemen's Iran‑backed Houthi fighters have seized territory near the Bab al‑Mandab Strait, a vital shipping channel that connects Asia to Europe. The advance has raised alarm among shipping companies that the Red Sea could become an increasingly unreliable route.

The Houthis have declared that they do not pose a threat to international traffic but have openly stated an intention to target vessels belonging to Saudi Arabia. That raises the risk of wider economic repercussions, especially for the Kingdom which has shifted a large share of its oil exports through the Red Sea corridor after the Strait of Hormuz was effectively closed by the recent US‑Israel war.

According to the United Nations, more than 46,000 people have been displaced in Yemen since the fighting intensified last week. The conflict could trigger disruptions in oil deliveries and impose higher insurance and rerouting costs that may push oil prices upward.

BBC Verify’s Thomas Copeland reports.