Iran-backed Houthi forces have seized control of Perim Island in the Bab el-Mandeb Strait, a critical Red Sea chokepoint. This strategic gain, along with the capture of Mokha and Dhubab, tightens the group’s grip on vital shipping routes, raising global economic and geopolitical concerns.
Houthi Control of Perim Island and Red Sea Chokepoint
Iran-backed Houthi forces have seized control of Perim Island in the Bab el-Mandeb Strait, a critical Red Sea chokepoint, according to four Yemeni government sources cited by Reuters. The move follows the capture of the Red Sea port city of Mokha and the mainland coastal town of Dhubab, which faces the island, further tightening the group’s grip on one of the world’s most vital shipping routes.
Houthi forces also withdrew from Perim Island as Yemeni government troops retreated toward Dhubab, a coastal town directly opposite the island, according to two sources from the Saudi-backed, internationally recognized Yemeni government. The developments mark a significant escalation in Yemen’s long-running civil war, which has simmered for years despite a U.N.-brokered truce that collapsed in recent weeks.
Immediate Impact on Shipping and Oil Markets
Global oil prices surged above $100 per barrel on Friday, nearing a five-month high, as markets reacted to the Houthi advances. Brent crude futures were on track to close the week above this threshold for the first time since mid-May, driven by concerns over potential disruptions to the Bab el-Mandeb Strait. The strait, which connects the Red Sea to the Gulf of Aden, sees 12% of global maritime trade pass through its waters, including oil shipments to Europe and Asia.
Saudi Arabia, the world’s largest oil exporter, has increasingly relied on the Red Sea route since disruptions in the Strait of Hormuz, through which 20% of global oil typically flows, following the U.S.-Iran conflict that erupted in late February. The Bab el-Mandeb Strait now serves as a critical alternative for Saudi oil exports, making Houthi control of the area a geopolitical and economic concern.
Houthi Statements and Restrictions
Houthi spokesperson Mohammed Abdulsalam stated that freedom of navigation and international trade in the Red Sea and Bab el-Mandeb Strait remains safe, but added that Houthi operations would continue until the "aggression" against Yemen ends. The Houthi-run Humanitarian Operations Coordination Center later clarified that navigation remains open to all shipping companies except Saudi vessels, which remain subject to a previously announced ban.
Regional and International Responses
The U.N. special envoy for Yemen, Hans Grundberg, warned the U.N. Security Council on Thursday that the international community must act to address the escalating conflict. Grundberg stated that the Houthis’ control of Mokha gives them "a direct presence on the approaches to one of the world’s most vital straits," raising serious concerns over freedom of navigation and maritime trade security.
Iran’s foreign ministry called for an end to Saudi Arabia’s blockade of Yemen and the immediate resumption of talks, emphasizing that Yemen’s sovereignty must be respected. Iran also expressed readiness to support negotiations, framing the developments as an opportunity to de-escalate tensions. Meanwhile, U.S. officials have accused the Houthis of acting as "agents and tools of Iran," with one representative stating that the escalation is "unacceptable."
Military and Strategic Context
The Houthis’ rapid advances along the Red Sea coast—capturing Mokha, Perim Island, and Dhubab—represent their biggest territorial gains in years. The group has also moved against the Hanish Islands, further consolidating control over the Bab el-Mandeb Strait. Yemeni government forces and their Saudi-backed allies have withdrawn southward along the coast, relocating to Dhubab in a defensive posture.
Analysts warn that full Houthi control of the strait could give Iran critical leverage in its conflict with the U.S., reducing oil supplies through a second major transit corridor and deepening the global energy crisis. The Strait of Hormuz, already disrupted by U.S.-Iran tensions, remains a parallel chokepoint, with Saudi Arabia’s East-West oil pipeline—used to bypass Hormuz—reportedly seeing smoke near its vicinity this week.
Economic Fallout
The surge in oil prices has already impacted global fuel costs. The U.S. national average price of diesel surpassed $6 per gallon for the first time, according to price tracker GasBuddy. AAA reports that U.S. gasoline prices are up 34% from last year, averaging $4.28 per gallon. Higher energy costs threaten to strain economies already grappling with inflation and supply chain disruptions.
Saudi Arabia, a key OPEC stabilizer, faces growing budget deficits amid reduced oil exports. The country exported just 3.2 million barrels per day last month, its lowest level in over a decade, as attacks on ships in both the Strait of Hormuz and Bab el-Mandeb Strait force costly rerouting of oil tankers.
Background: Yemen’s Decade-Long Conflict
Yemen’s civil war, now in its tenth year, pits the Iran-backed Houthi rebels against the Saudi-backed Yemeni government, which is internationally recognized. The conflict escalated in 2015 when a Saudi-led coalition intervened to restore the government after the Houthis seized the capital, Sanaa. A U.N.-brokered truce in 2022 brought relative calm, but fighting resumed in recent weeks, raising fears of a return to all-out war.
The Houthis’ recent gains come amid heightened regional tensions, including direct exchanges between the U.S. and Iran in the Persian Gulf. The group’s advances in Yemen are seen as part of Iran’s broader strategy to project influence across the Middle East, particularly in areas critical to global energy security.