The Houthis have opened a new front in the Middle East oil war that s pushing up prices

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Published: 2026-09-11T20:23:16.113Z • Permanent link

Saudis and Houthis are locked in a bitter struggle for control of the Bab al-Mandeb Strait, a strategic waterway connecting the Red Sea to the Gulf of Aden. The Houthis, backed by Iran, have gained effective control of the strait, crippling the flow of oil shipments from Saudi Arabia to Asia. The Saudi East-West pipeline, a critical artery for oil exports, was shut down in late August after a Saudi-led coalition launched a military operation against the Houthis.

Yemeni President Abdrabbuh Mansur Hadi, a key player in the conflict, has been working closely with the Saudi-led coalition to restore control of the strait. The Houthis, however, remain entrenched in the capital city of Sanaa, where they have established a stronghold. The United Nations has been trying to mediate a ceasefire, but talks have been stalled for months.

Riyadh has accused the Houthis of violating a UN-brokered ceasefire agreement, which was meant to ease the humanitarian crisis in Yemen. The Houthis have denied the allegations, claiming that Saudi airstrikes have caused widespread destruction and killed civilians. The conflict has already claimed thousands of lives and pushed the country to the brink of famine.

Oil prices are already on the rise, and the disruption to global supply chains is only adding to the pressure. Companies like Saudi Aramco, which supplies oil to China and India, are feeling the pinch. The impact on the global economy will be significant, with the International Energy Agency predicting that oil prices could rise by up to 10% in the coming months.

Markets are already showing signs of jitters, with oil stocks taking a beating. Research communities are on high alert, monitoring the situation closely to predict how the conflict will unfold. The stakes are high, with the global economy already vulnerable to supply chain disruptions.

The conflict in Yemen is part of a larger pattern of competition for influence in the Middle East. Saudi Arabia and Iran have been locked in a proxy war for years, with the Houthis caught in the middle. The conflict has its roots in the 2011 Arab Spring, when the Houthis rose up against the Yemeni government, which was backed by Saudi Arabia.