Yemen’s Houthi rebels have intensified restrictions on Red Sea oil shipments linked to Saudi Arabia, contributing to a rise in global oil prices beyond $100 per barrel. While the group asserts it is blocking only Saudi-bound maritime traffic, recent data indicates that shipments to certain countries, including China, may be exempt from the blockade.
On July 23, two Chinese tankers carrying approximately four million barrels of oil passed safely through the Bab Al-Mandeb Strait, despite Houthi claims of attacking two Saudi tankers the previous day. The Houthis have previously negotiated safe passage for vessels, particularly during their campaign against shipping from 2023 to 2025, in association with Hamas. It remains unclear if China reached a specific agreement to allow its tankers to transit unhindered this time.
The renewed attacks and disruption have curtailed shipping volumes in the strategic waterway, pushing oil prices upward and reinforcing the effects of Iran’s closure of the Strait of Hormuz. Iran’s move to block this critical passage intensified pressure on Saudi Arabia, which has since rerouted much of its crude exports to the Red Sea port of Yanbu.
The Houthis, a Shia rebel group controlling large areas of northern Yemen including its capital, Sanaa, have framed their actions as enforcing a maritime blockade in retaliation for the breakdown of a 2022 ceasefire with Saudi Arabia. However, analysts suggest the blockade serves as a strategic effort to support Iran amid escalating U.S. attacks on Iranian infrastructure. The group operates with Iranian military backing and is regarded as a key element in Iran’s regional "axis of resistance," capable of disrupting nearly a third of global container shipping passing through the Red Sea.
Despite targeting Saudi-related maritime traffic, the Houthis appear cautious not to provoke a substantial military response similar to last year, when a U.S.-led offensive resulted in the deaths of hundreds of their fighters. U.S. officials continue to hold Iran responsible for the Houthi actions, viewing the rebels as Iranian proxies.
Former U.S. President Donald Trump commented on the recent strikes, warning that if such attacks continue, the U.S. would impose severe military consequences on Iran and the Houthi forces. The situation remains tense as the regional dynamics surrounding key oil export routes evolve, prompting concerns over supply stability and the potential for broader conflict.