Yemen’s Iran-backed Houthis have moved from threats to action, declaring a blockade on Saudi vessels in the Bab el-Mandeb Strait and claiming successful attacks on two Saudi oil tankers.
The moves come as the United States continues strikes on Iran and oil markets react with a sharp climb past $100 a barrel.
What began as a regional proxy fight now risks becoming a second major disruption to global energy supplies—right after the Strait of Hormuz already faced severe constraints.
Meanwhile, President Donald Trump weighs the option of a “massive” attack on Iran during the ongoing hostilities, while Tehran widens its retaliatory moves in the Middle East. Washington has made clear that it would hold Iran responsible for its proxy Houthis’ destabilizing actions.
Not Just A Blockade
The Houthis announced a naval blockade targeting Saudi Arabian ports and ships transiting the Bab el-Mandeb, the narrow waterway linking the Red Sea to the Gulf of Aden. They framed it as retaliation for what they call a long-standing Saudi-led siege of Yemen and a recent airstrike on Sanaa International Airport that they blamed on Saudi-backed forces. Houthi statements described the step as an “eye for an eye” response to years of restrictions on Yemeni ports and airports.
Days later the group said it had followed through. Houthi military spokesman Yahya Sarea claimed forces targeted the Saudi-flagged tankers Encelia and Layla with missiles and drones for “violating” the blockade. Saudi state media confirmed that the Encelia was struck in the Red Sea, resulting in a fire at the bow. The United Kingdom Maritime Trade Operations center reported an incident involving a tanker hit by an “unknown projectile” roughly 70 nautical miles southwest of the Saudi coastal town of Al Shuqaiq. No casualties were immediately reported, but the message was clear: Saudi oil traffic through the strait is now under direct threat.
Around 12 percent of global trade, including a significant share of container traffic and oil shipments, normally passes through this corridor on its way between Europe and Asia via the Suez Canal. With the Strait of Hormuz already heavily constrained by the broader Iran conflict, Saudi Arabia had been shifting more crude westward through pipelines to Red Sea terminals and then out through Bab el-Mandeb. The Houthi blockade undercuts that workaround.
Oil Surges to $100 a Barrel as Houthi Attacks Escalate Red Sea Crisis
Oil Markets Feel the Shock
The market reaction was immediate. Brent crude, the global benchmark, settled above $100 a barrel for the first time since May, rising roughly 7 percent in a single session to around $100.69. West Texas Intermediate climbed above $90. Analysts noted that the dual pressure—Hormuz disruptions plus fresh Red Sea risk—added a new risk premium. Some energy consultants warned that sustained interference with Bab el-Mandeb flows could push prices still higher, potentially into the $115–$120 range if more tankers are forced to divert around the Cape of Good Hope, lengthening voyages and raising insurance and freight costs.
Saudi vessels and others with perceived links to the kingdom have already begun adjusting routes. Reports indicated that additional tankers turned back after warnings. The Houthis later stated their operations were focused on Saudi-related shipping rather than a total closure of the strait, but the distinction offers limited comfort to markets already on edge.
Strait traffic remains uneven
Maritime activity remained mixed across key regional chokepoints on 23 July, with no new confirmed IMO attacks were reported. Strait of Hormuz traffic fell to six confirmed crossings, down 60 per cent from the previous day, with all but one vessel… pic.twitter.com/2t8QFiJQ8d
— Kpler (@Kpler) July 24, 2026
Pakistan Issues a Direct Warning
The escalation drew a firm response from Pakistan. Islamabad condemned the Houthi threats as violations of international law that endanger freedom of navigation and regional security. Foreign Ministry statements expressed particular concern about threats directed at vessels trading lawfully with Saudi Arabia.
The nuclear-armed Pakistan, which signed the June 17 U.S.-Iran Memorandum of Understanding on ceasefire and further negotiations on nuclear and other issues, has a mutual defense pact with Riyadh, which interprets attack on one country as attack on both.
Islamabad went further. Spokesperson Tahir Andrabi warned that any attack on Pakistani commercial vessels in the Red Sea would be treated as an attack on the country’s national security.
🔴 Pakistan has informed Iran that it’s necessary to pressure Yemen’s Houthis into stopping their attacks in the Red Sea, a senior source tells Al Arabiya
🔴 Pakistan told Iran that closing Bab al-Mandeb will further complicate the situation, the source added pic.twitter.com/4zVzteW0ue
— Al Arabiya English (@AlArabiya_Eng) July 24, 2026
“If Pakistani commercial vessels are attacked, Pakistan will regard it as an attack on its national security, and we will respond with full force,” he said. The government reserved the right to take all necessary measures, including the use of force, to protect its maritime interests. The United States joined Pakistan in condemning the threats to commercial shipping and Saudi Arabia.
A Conflict That Keeps Widening
These developments do not exist in isolation. The Houthis had largely paused large-scale maritime attacks after the October 2025 Gaza-related ceasefire arrangements. That relative calm ended as the wider confrontation between the United States, Israel, and Iran intensified in 2026. The group resumed missile strikes toward Israel in March and has repeatedly linked its actions to solidarity with Iran and opposition to Saudi pressure on Yemen.
The latest steps raise the prospect that the Iran-focused conflict could reopen the long-running Saudi-Houthi front that had been managed under a fragile truce. Saudi Arabia has indicated it will take necessary measures to protect its ships.
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Oman has urged de-escalation and is coordinating with regional parties and the United Nations to revive Yemen peace efforts. UN Secretary-General António Guterres has voiced alarm over threats to navigation and the potential for broader economic and humanitarian damage.
Higher oil prices feed into gasoline and diesel costs. Longer shipping routes raise the price of goods moving between Asia and Europe or the U.S. East Coast. And any expansion of fighting in the Red Sea complicates the already difficult task of protecting commercial vessels while U.S. forces remain engaged against Iranian targets.
The Houthis have demonstrated they can impose costs with relatively limited resources. Whether this becomes a sustained campaign or a short, high-visibility pressure tactic will depend on how Riyadh, Washington, Tehran, and the Houthis themselves calculate the next moves.
But ripples of the attacks area already expanding beyond the Red Sea as of the world’s critical energy arteries strains, and the price of the turmoil extends to the pump and the trading screens.
Kiran Asim is a writer who covers the U.S., Europe, South Asia, and the Middle East. Her reports and analyses look at the geostrategic issues and contemporary developments and their economic and political implications. She also writes about society and education.
