Houthi Maritime Blockade Threat Elevates Red Sea Oil Risks

Iran‑backed Houthi rebels in Yemen announced a maritime embargo against Saudi Arabia, warning that any vessel loading or discharging cargo at Saudi ports could be targeted anywhere. The group said the blockade is an “eye‑for‑eye” response to a Saudi siege and that it is effective immediately. The threat focuses on the Bab al‑Mandeb strait, a key Red Sea chokepoint through which about 5 % of global oil supplies pass.

The announcement prompted two Saudi‑crude tankers bound for China and India to make U‑turns in the Red Sea and head toward the Suez Canal, underscoring the risk of route disruptions. Analysts note that Saudi exports from the Red Sea now total roughly 3.6 million barrels per day, and a full closure could cut global oil flow by up to five percent. Oil prices have risen and insurers have lifted war‑risk premiums.

U.S. President Donald Trump warned the Houthis that the United States would “take care of it” if the blockade materialises, while the United Arab Emirates and other Arab states condemned the Houthi statements and called for implementation of UN Security Council resolutions on freedom of navigation. Regional leaders, including Saudi officials, pledged to protect shipping and protect the kingdom’s energy exports.

The development adds a new front to the ongoing U.S.–Iran conflict, raises concerns for Asian oil importers such as India, and could force refiners to reroute cargo via the Suez Canal or around Africa, further escalating freight costs and delivery times.