Yemen's Houthi fighters have significantly escalated attacks on shipping in the Red Sea, threatening to choke off the main maritime route connecting Europe and Asia. This aggressive action has forced vessels to turn back from the narrow Bab El Mandeb strait, causing substantial disruption to global trade.
The Houthis claim responsibility for hitting two Saudi vessels and turning back 10 others this week. These actions directly impact the strategic Bab El Mandeb Strait, which links the southern Red Sea with the Indian Ocean. The disruption adds to existing global economic pressures, particularly concerning energy and fertilizer supplies.
This development unfolds against a backdrop of continued US-Iran strikes and growing fears of a broader Middle East conflict. The region is experiencing heightened tensions, with US Central Command (Centcom) conducting 12 consecutive nights of airstrikes on Iranian coastal radar, drone, and missile bases. Gulf Arab states are also facing constant attacks from Iran, further destabilizing the area.
The Houthi group, closely allied with Iran, entered the fray after a 2022 ceasefire with Saudi Arabia reportedly broke down. Saudi Arabia, attempting to distance itself from the Iran-US conflict, has largely avoided the drone and ballistic missile attacks targeting Bahrain, Kuwait, and Jordan. However, the Red Sea attacks now directly threaten Saudi oil exports.
Saudi Arabia has partially mitigated disruptions by shipping millions of barrels of oil daily through the East-West Pipeline to the Red Sea export terminal at Yanbu' Al-Bahr. From there, tankers transport oil to Asia via the Bab El Mandeb Strait. The current Houthi threats jeopardize this crucial export route.
The Houthis are a Shia tribal group from northern Yemen, based around Saada. They seized Yemen's capital, Sanaa, in 2014 and now control most populated areas, including the strategic port of Hodeidah. Saudi Arabia intervened in 2015 to counter the Iranian-backed militia on its southern border, but the Houthis have remained entrenched despite years of conflict.
Previous Houthi campaigns, from 2023 to 2025, targeted what they called Israeli-linked shipping in the Red Sea. These actions caused significant diversions of global shipping and increased costs. They also triggered military intervention by the US and UK to protect maritime commerce. There is now a strong concern that similar economic impacts will recur.
The ongoing instability in the Gulf and Arabian Peninsula is a major concern for analysts. US airstrikes against Iran have not forced the Revolutionary Guard Corps (IRGC) to relinquish control of the Strait of Hormuz. Each US strike often results in Iranian retaliation against neighboring Arab states hosting US bases, creating a dangerous cycle.
Economically, the clock is ticking as the disruption to vital shipping lanes continues. The closure of the Strait of Hormuz and now the threats in the Red Sea pose significant obstacles to global trade. This situation will likely lead to higher shipping costs and potential delays in the delivery of goods worldwide, impacting various sectors of the global economy.