Houthi militants backed by Iran have expanded their control over key areas of the Red Sea, escalating tensions around one of the world’s most critical energy transit corridors. On Friday, the Houthis seized the strategic port city of Mokha in Yemen, displacing forces allied with the Yemeni government and Saudi Arabia. This development complicates shipping routes for Persian Gulf crude, further narrowing options for oil exports amid ongoing conflict and heightened regional instability.
The Red Sea route has increasingly become a focal point as the Strait of Hormuz, long the principal artery for Middle Eastern oil, remains severely disrupted. Since early this year, Iran has restricted access to the strait following U.S. and Israeli strikes, pushing more oil shipments to reroute through alternative passages such as the Bab al-Mandab Strait at the southern entrance to the Red Sea. However, with the Houthis now controlling significant portions of this area, the alternatives are shrinking.
Saudi Arabia, the Middle East’s largest oil exporter, also faces setbacks. The country’s Energy Ministry reported that its East-West Pipeline—a key facility used to circumvent the Strait of Hormuz—was targeted multiple times by attacks and temporarily shut down as a precaution. Only two Saudi cargo shipments passed through the Bab al-Mandab Strait in the past week, a sharp decline that highlights the growing risks.
Maritime analysts note that while the U.S. Navy maintains a presence to facilitate oil transit near Oman’s coast, the operation has become increasingly perilous. Since the war’s escalation in February, at least 23 vessels were struck near the Strait of Hormuz in July and August, resulting in 22 deaths among sailors operating in the region. The ongoing attacks and countermeasures have significantly reduced traffic; daily vessel transits through the strait have dropped to an average of 19 in September, compared to approximately 300 ships per day before the conflict.
The war’s economic impact is evident in rising global energy prices. Oil briefly exceeded $108 per barrel on Friday, about 50 percent above prewar levels. In the United States, average gasoline prices have climbed over $4 per gallon, with diesel surpassing $6 per gallon. These increases underscore the broad consequences of the supply disruptions and escalating violence.
Efforts by the U.S. administration to stabilize the market face mounting challenges. Despite recently imposing stringent sanctions on Tehran aimed at pressuring the Iranian government, officials acknowledge limited options remain to bring the conflict to a swift resolution or lower energy prices. Some analysts suggest the situation could only improve through direct negotiations or significant military action, while others note the risk of further escalation.
Iran has maintained demands for the lifting of the U.S. naval blockade of its ports and the release of frozen assets in exchange for easing restrictions around the Strait of Hormuz. Meanwhile, the Houthis continue to leverage control over the Red Sea route to exert pressure not only on Saudi Arabia but also on global trade flows.
The ongoing conflict in the Middle East, now entering its seventh month, is deepening one of the most severe crises in global energy supply in decades. With crucial maritime corridors increasingly contested, the prospects for stability and secure energy transit remain uncertain.