Iran-backed Houthi rebels captured the strategic island of Perim in the Bab el-Mandeb Strait on Friday, a move that significantly tightens their control over one of the world’s most vital global shipping arteries. Four sources from the Yemeni government told Reuters that the militant group also seized the mainland Red Sea coastal town of Dhubab, directly opposite the island, after government forces withdrew from the area.
If the Houthis consolidate control of the strait, which lies on the opposite side of the Arabian Peninsula from the Strait of Hormuz, it would deliver a severe blow to international trade. Such a development would provide their patron, Iran, with a critical advantage in its ongoing conflict with the United States by disrupting a secondary major corridor for energy supplies and further driving up oil prices.
The broader war, which began six months ago with US and Israeli strikes on Iran, has already seen the Strait of Hormuz effectively closed. This chokepoint handles approximately one-fifth of global oil and liquefied natural gas trade. In response, Saudi Arabia—the world’s largest oil exporter and a close US ally—has increasingly relied on the Red Sea route for its exports.
Tensions escalated this week as both Iran and the US intensified attacks on Gulf shipping. In a speech marking the 25th anniversary of the September 11 attacks, US President Donald Trump labeled Iran “the world’s number one sponsor of terror.” Iranian President Masoud Pezeshkian responded by accusing the same “devils” responsible for an alleged US strike on a school in February of making such claims.
Compounding the logistical crisis, satellite imagery verified by Reuters showed smoke rising near Saudi Arabia’s East-West oil pipeline on Thursday. This infrastructure is essential for diverting crude exports away from the Hormuz strait. State media reported the pipeline was temporarily shut following attacks that caused several injuries, though the Saudi government has not officially confirmed any incidents in the area. Aramco and the government media office did not immediately respond to requests for comment.
The International Energy Agency reported on Friday that Saudi crude supply fell to 6 million barrels per day in August, a decrease of 2.3 million barrels from the previous month and the lowest level in over three decades. The decline is partly attributed to Houthi-linked groups targeting ships transiting the Bab el-Mandeb strait.
While oil prices dipped on Friday, they remain on track to exceed $100 a barrel for the first time since mid-May. Meanwhile, vessel traffic through the Strait of Hormuz dropped to just seven ships on Thursday, down from 11 the previous day and far below the typical daily volume of 125 large commercial vessels. Iranian representatives are scheduled to meet with counterparts from Iraq and Gulf Arab states in Oman on Monday to resume discussions on securing safe shipping routes.
Houthi military spokesperson Yahya Saree stated that maritime navigation remains safe for all vessels except those belonging to Saudi Arabia, which are subject to a previously announced ban. “We will continue to enforce blockade for blockade and escalation for escalation until the aggression stops and the blockade on our people is lifted,” Saree said, referring to Saudi airstrikes on Yemen.
Yemeni government forces have indicated plans for a counter-offensive to retake the territories lost this week. Reports indicate the Houthi advance was guided directly by Iran’s Revolutionary Guards, who sought to open a new front in the war with the US. Two Iranian sources confirmed that Tehran promised increased funding, weapons, and senior officers to support the escalation.
Saudi Crown Prince Mohammed bin Salman reportedly called Trump at least twice on Thursday to request US military assistance against the Houthis. Sources familiar with the matter told Reuters that Washington declined to take direct military action at this time but offered to assist with intelligence sharing and targeting. The White House did not comment on specific calls, but a senior administration official stated that Washington maintains continuous dialogue with Saudi Arabia and the Yemeni government.
As the conflict drags on, Trump’s approval ratings have fallen to record lows ahead of the November US midterm elections.
Seems like a coordinated push with Iranian backing. The UAE and Saudi pipelines are now the only alternatives left.
If Hormuz is gone and Perim falls, global energy markets are in serious trouble. Prices will skyrocket beyond $100 soon.