Red Sea back in the spotlight. Houthis may trigger a rise in oil and fuel prices

The Yemeni Houthis have officially become involved in the conflict in the Middle East. They support Iran and have threatened to block the passage of enemy vessels through the Red Sea. If the situation continues to escalate, the world could face not only another sharp increase in energy prices but also a trade crisis with global repercussions.

War in Iran and the Red Sea

In a televised speech on June 8, Houthi spokesperson Yahya Saree announced that any movement of Israeli vessels through the Red Sea would be considered hostile and would be met with retaliation. The statement was a direct response to the renewed intensification of the conflict between Israel and Iran.

According to Yemeni sources cited by Reuters, preventing Israeli ships from navigating the Red Sea is only the first step. If aggression against Iran continues, the Houthis plan to stop all ships bound for Israel.

Since nearly the beginning of the conflict in the Middle East, traffic through the Strait of Hormuz, a global corridor for transporting crude oil from the Persian Gulf, has remained severely restricted, already affecting global fuel prices. The Houthis are now threatening to block the Bab al-Mandab Strait, which connects the Gulf of Aden with the Red Sea. What could this mean for the global economy?

Bab al-Mandab Strait: the second gateway of the Middle East energy corridor

The Bab al-Mandab Strait is approximately 50 km long, and its width at the narrowest point does not exceed 26 km. It is often described as a maritime chokepoint because it can be easily controlled from the shores of Yemen and Djibouti, while strong sea currents further complicate navigation. Around 10 percent of global cargo traffic passes through the strait, including crude oil, natural gas, and containerized goods.

The Straits of Hormuz and Bab al-Mandab form the main route for transporting fossil fuels from the Middle East to Europe. If both are blocked, fuel prices at gas stations could rise again, energy costs could increase, and supply chains around the world could be disrupted. Experts are also concerned about higher global maritime shipping costs.

Who are the Houthis?

The Houthis are a Shiite political and military movement that emerged in northern Yemen in the 1990s and has controlled a significant part of the country for more than a decade. Actively supported by Iran, they are one of the main actors in the bloody civil war that has already claimed hundreds of thousands of lives. The movement’s slogan clearly reflects its rhetoric of hatred: Death to America, death to Israel, a curse upon the Jews.

Over the past three years, the Houthis have openly demonstrated their influence in the Red Sea, actively involving themselves in Israel’s war with Hamas in the Gaza Strip. During that period, the volume of oil transported through the Bab al-Mandab Strait fell from 8.8 million to about 4 million barrels per day.

The Houthis attacked commercial vessels sailing along the Yemeni coastline under their control, using drones, mines, and missiles. Their actions caused major disruptions to maritime trade routes and forced many shipping companies to reroute vessels along the much longer route around the coast of Africa. The attacks ceased after the Gaza ceasefire in October 2025, but the current tensions in the region have raised concerns that they could resume and escalate.