Iran Pressures Houthis to Block Bab el-Mandeb Strait, Threatening Global Oil
Key Takeaways
- Houthis, backed by Iran, attacked Israel on March 28 with ballistic missiles.
- Red Sea shipping disruption could drive oil prices higher and hurt global trade.
- Iran pressures Houthis to block Bab el-Mandeb, creating risks to Suez Canal trade.
Emerging Economic Threat
Analysts warned the conflict's economic fallout could expand dramatically if the Houthis enter the fray as a proxy force.
“Having spent a month on the sidelines, Yemen’s Houthis have entered the regional conflict between their ally, Iran, and its enemies, the United States and Israel”
Iran is counting on the Houthis to shift the balance in the Red Sea by targeting commercial shipping.
Capital Economics emphasized the impact on Asian economies more reliant on Saudi oil would be significant.
An effective closure of Bab el-Mandeb would push the global economy closer to an adverse recession scenario.
Houthi Entry Into Regional War
The Houthis officially entered the regional conflict on March 28 by firing ballistic missiles at Israeli military positions.
The Yemen-based group warned their operations would continue until Israeli aggression ceased.
L'Humanite9 reported that the Houthis added a new red hotspot to a Middle East already aflame.
Shifting Shipping Risks
The Houthis warned they could target vessels passing through the Bab el-Mandeb strait.
Between 2023 and 2025, the Houthis attacked more than 100 ships.
The global economy is facing the specter of the largest energy crisis in history.
Bloomberg Intelligence warned of catastrophic consequences for global market stability.
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