Yemen’s Houthi rebels on Monday declared a maritime embargo against Saudi Arabia effective immediately, threatening to worsen oil supply disruptions sparked by Iranian attacks on oil tankers in the Strait of Hormuz.
The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the US-Iran war. The strait is a choke point for commercial shipping linking the Red Sea with the Gulf of Aden and world markets.
In a statement carried by state news, the militants accused Saudi Arabia of waging an “aggressive siege” against them. Tensions escalated last week after Riyadh claimed it had bombed Sana’a International Airport.
Saudi Arabia transports millions of barrels of oil per day through pipelines to export terminals in the Red Sea. These exports served as an important relief valve for global oil markets during the US-Iran war.
If the Bab el-Mandeb is shut down, these barrels will be blocked and the chaos caused by the Iranian attack on the Hormuz tanker will be exacerbated.
However, oil prices changed little in response to the Houthi threat. Brent crude oil, the international benchmark, rose nearly 4% overnight to top $90 a barrel after recent fighting between the United States and Iran left at least three U.S. service members dead. Prices have since softened as Iran’s government has indicated it remains open to talks with Washington.
The war between the United States and Iran intensified as an interim agreement signed on June 17 to reopen Hormuz Island collapsed. The Iranian government has repeatedly attacked oil tankers this month, killing at least two sailors and injuring more than a dozen others.
The United States bombed Iran for nine consecutive days and reimposed a naval blockade following an attack on a tanker. The Iranian government retaliated by firing missiles at US allies in the Gulf.
As the fighting intensified, tanker traffic through Hormuz decreased. The Trump administration said the strait remains open and millions of barrels of oil are being transported each day under U.S. military protection.
