Houthi advances along Red Sea coast raise concerns over oil and gasoline prices
Iran-aligned Houthi forces seized the Yemeni port of Mokha and nearby islands, prompting disruptions to Saudi oil shipments and contributing to higher global crude and U.S. gasoline prices.
Iran-backed Houthi fighters captured the Red Sea port city of Mokha and the island of Mayun on Friday, pushing Saudi-backed Yemeni troops from six districts in the Taiz and Hodeidah governorates. Videos and statements from the group showed Yemeni army units withdrawing and leaving equipment for the Houthis to take.
Senior Houthi leader Mohammed Bukthi told reporters the attacks were a response to Saudi Arabia’s long-standing blockade of Houthi-controlled areas, which he said has caused hunger-related deaths. He said the group is targeting only Saudi interests and not international shipping, describing the campaign as a “blockade for a blockade.”
The fighting coincided with heightened tensions in the Persian Gulf, where U.S. and Iranian forces exchanged fire. Brent crude rose above $108 a barrel before settling near $105, and U.S. gasoline prices reached an average of $4.30 per gallon, up more than 34% from a year earlier, according to the American Automobile Association.
Saudi Arabia’s oil exports fell to 3.2 million barrels per day last month, the lowest level in over a decade, as attacks on the Bab el-Mandeb strait and the Strait of Hormuz forced the kingdom to reroute crude through longer, costlier pathways, including the Suez Canal and around Africa. Satellite imagery showed a fire near a pipeline that carries Saudi oil to the Red Sea, which the Houthis say was targeted.
The United Nations International Organization for Migration reported that at least 18,500 people have been displaced by the recent battles along Yemen’s western coast, with families arriving at humanitarian sites that lack sufficient food and shelter supplies.
"Yemen will not be silenced as Saudi Arabia and its allies are free to navigate these waters while Yemen isn’t able to do so in the Red Sea," Bukthi said.
Analysts at Capital Economics warned that the combined conflicts on both sides of the Arabian Peninsula increase the risk of further energy price hikes in the coming weeks.