Iran and Houthi forces seize control of two major maritime chokepoints, raising global oil prices

Iran and its allied Houthi militia have taken steps that limit traffic through two of the world’s most important shipping lanes. After U.S. and Israeli strikes in late February, Iranian forces intensified attacks on vessels passing the Strait of Hormuz, a narrow passage between Iran and the Arabian Peninsula that handles a large share of global oil shipments.

In a separate move, the Yemen-based Houthi group announced on Sept. 11 that it had seized Perim Island, giving it the ability to control the Bab el-Mandeb Strait, the gateway between the Red Sea and the Gulf of Aden. Analysts say the capture creates an additional leverage point for Tehran in its broader confrontation with the United States and restricts alternative routes that shipping firms have used to bypass Hormuz disruptions.

The combined pressure on both chokepoints has pushed Brent crude to near $110 a barrel before settling around $104, according to market data. > "The Strait of Hormuz was already an unprecedented supply disruption, but prices remained remarkably resilient because the market found workarounds, including diverting barrels through the Red Sea and Bab el-Mandeb," said Rebecca Babin, senior equity trader at CIBC Private Wealth. She added that the recent Houthi escalation threatens that relief valve, leaving no clear alternative route.

Energy strategists warn that the situation could deepen inflationary pressures, as diesel prices in the United States have risen to $6.06 per gallon and refinery slowdowns in the Middle East, Russia and China limit fuel supplies. The developments have also prompted Saudi Arabia to launch airstrikes on the Yemeni port city of Mokha, which the Houthis now control, raising the risk of a broader regional conflict.