The Iran Houthis have entered the escalating US-Iran conflict, announcing a maritime embargo on Saudi shipping through the Bab al-Mandeb Strait, a key gateway linking the Red Sea to global trade routes.
The Iran-backed group said it would block Saudi vessels from using the strategic waterway, a move that could disrupt one of the region’s most important alternative oil export routes. The announcement comes as shipping through the Strait of Hormuz remains under pressure, raising fresh concerns about global energy supplies.
Oil markets reacted immediately. Brent crude briefly climbed close to $90 a barrel as traders priced in the risk of further supply disruptions across the Middle East. The Bab al-Mandeb Strait has become increasingly important because it allows Saudi oil exports to reach global markets without relying entirely on the Strait of Hormuz.
The announcement followed another weekend of heavy fighting between the United States and Iran, during which three Americans were reportedly killed. Despite both sides saying they remain open to diplomacy, hopes for a near-term de-escalation appear to be fading.
President Donald Trump responded with a warning on social media, writing:
“Every time Iran kills an American Soldier they will pay for that killing many times over!”
For investors, the latest escalation adds another layer of uncertainty to global markets. Any prolonged disruption to shipping through the Bab al-Mandeb or Strait of Hormuz could keep oil prices elevated, complicate the inflation outlook, and increase volatility across energy and equity markets.
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