Oil prices surged on Thursday, with Brent crude jumping as much as 4 percent to over $105 a barrel, as Iran-backed Houthi rebels seized control of Yemen's port city of Mokha. The seizure of this area, vital for controlling shipping through the Red Sea, has heightened concerns about disruptions to global supply routes. In the United States, the national average price for diesel surpassed $6 a gallon for the first time, according to price tracker GasBuddy.
Yemeni government military sources reported that the Houthi group has gained significant leverage over the Bab el-Mandeb Strait, a critical outlet of the Red Sea and one of the world's most important shipping lanes. The rebels have also reportedly reached the Hanish Islands. This development provides Iran with another potential point of influence in its conflict with the U.S.
The Houthi takeover occurred just hours after President Donald Trump stated his expectation that the war with Iran would conclude after the U.S. midterm elections. If the Houthis solidify control over this waterway, which lies on the opposite side of the Arabian Peninsula from the Strait of Hormuz, it could offer Iran a substantial advantage by potentially restricting supplies through a second major transit corridor and driving oil prices higher.
This situation could also complicate efforts by the Trump administration to find an exit from the war, which has reportedly impacted the Republican Party's electoral prospects ahead of the November midterms. President Trump, in an interview broadcast Thursday, reiterated his belief that the war would end immediately after the elections. He also reflected on the war, stating, "If I had to do it again, I would do exactly as I did."
The Houthi-run humanitarian operations coordination center in Yemen stated that Red Sea navigation remains safe for all shipping companies, with the exception of Saudi vessels. Saudi Arabia, a leading global oil exporter, has utilized the Red Sea route extensively since the conflict with Iran effectively closed the Strait of Hormuz, a passage that previously handled one-fifth of global oil transit.
UN Special Envoy for Yemen Hans Grundberg informed a UN Security Council meeting on Thursday that the international community must address "a new and more dangerous phase" in the Yemen war. He expressed serious concerns about freedom of navigation following the Houthis' direct presence on the approaches to the Bab el-Mandeb Strait.
U.S. representative Jenifer Neidhart de Ortiz at the UN meeting accused the Houthis of acting as "agents and tools of Iran," stating that "This escalation is unacceptable, and those who enable it bear responsibility for its consequences."
Iranian foreign ministry statements indicated that the Yemen conflict could not be resolved through blockade or military action against the Houthis, calling instead for dialogue. However, Yemeni government, Iranian, and regional sources have told Reuters that the Houthi advance down the coast this week occurred with direct guidance from Iran's Revolutionary Guard Corps.
Houthi spokesperson Mohammed Abdulsalam described the group's operations as defensive, asserting they would cease once attacks on Yemen stopped. The Houthis have escalated attacks this month, following their declaration of a naval blockade against Saudi Arabia in July, after joining the conflict with an attack on Israel in March.
Tensions remain high in the region. Saudi civil defense authorities issued emergency alerts for the city of Khamis Mushait for the fourth time in 24 hours due to Houthi attacks. Pakistan has conveyed a Saudi warning to Iran, urging Tehran to restrain the Houthis and prevent a wider crisis, according to Saudi, Pakistani, and Iranian sources. A senior Iranian official, however, stated that "Iran does not control the Houthis."
The current fighting coincides with a significant wave of U.S.-Iran tit-for-tat attacks on Gulf shipping since the war began in late February. In response, the U.S. Treasury Department announced new sanctions on Thursday against firms and individuals supporting Hezbollah and other Iranian proxies as part of "Operation Economic Outcast," aimed at cutting off Tehran's war funding.
Recent preliminary ship-tracking data indicated a decrease in vessel transits through the Strait of Hormuz, with only seven vessels passing on Wednesday, half the average of the preceding ten days. This suggests a setback in efforts to gradually reopen the strait, which carries approximately one-fifth of global oil supplies. Meanwhile, Iranian state media reported on Thursday that the Revolutionary Guards Navy had struck a U.S. unmanned vessel at the entrance to Hormuz.