Yemen's Iran-backed Houthis have declared an immediate naval blockade on Saudi Arabia, raising the risk of disruptions to Red Sea shipping and global energy supplies.
The Bab el-Mandeb Strait is under renewed focus, with analysts warning that a full closure could significantly disrupt Saudi oil exports and tighten global crude supplies.
Despite the escalation, diplomatic efforts remain underway, with Iran confirming it has received fresh proposals from mediators.
Why the Houthis' Latest Move Could Send Shockwaves Through Global Oil Markets
The Iran-backed Houthi group has announced an immediate naval blockade on Saudi Arabia, escalating tensions in the Red Sea even as diplomatic efforts between Tehran and Washington continue
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Yemen's Iran-backed Houthi movement has announced a naval blockade on Saudi Arabia, opening a new flashpoint in the ongoing regional conflict and raising concerns over global energy supplies and maritime trade, reports said.
The declaration comes amid heightened hostilities involving Iran, the US and Israel, even as diplomatic efforts continue behind the scenes to prevent the conflict from escalating further.
Blockade Raises Risks for Oil and Shipping
In a statement on Monday, the Houthis said they were imposing an immediate "maritime embargo" against Saudi Arabia, describing the move as retaliation for what they called the kingdom's continued blockade of Yemen.
The announcement has intensified concerns over shipping through the Red Sea and the Bab el-Mandeb Strait, one of the world's most important maritime chokepoints linking the Red Sea with the Gulf of Aden.
A complete closure of the Bab el-Mandeb could disrupt around 7% of global oil supplies by restricting the movement of most Saudi crude exports.
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Such a disruption would compound existing supply shortages caused by the wider Gulf conflict, which has already reduced global oil shipments by an estimated 10%.
While oil prices briefly climbed after the Houthi announcement, they later pared gains as investors remained hopeful that diplomatic negotiations could ease tensions.
Shipping insurance premiums for vessels operating in the Red Sea, however, increased as security risks mounted.
Saudi Arabia Rejects Houthi Claims
Saudi Arabia condemned the Houthi allegations that it was imposing a siege on Yemen, rejecting the accusations and warning that it would take all necessary measures to safeguard its commercial and maritime interests.
The Saudi Foreign Ministry said the kingdom would protect its vessels against any threats following the Houthi declaration.
Diplomatic Efforts Continue
Despite the latest escalation, diplomatic engagement between Tehran and Washington appears to be continuing.
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Iran's Foreign Ministry said mediators had presented new proposals, while a senior Iranian official told Reuters that Tehran had received a proposal for a 10-day ceasefire aimed at preserving last month's interim agreement and creating space for broader negotiations.
Meanwhile, U.S. President Donald Trump defended recent military strikes on Iran, saying they were a response to attacks that killed American service members.
He warned that any future attacks on U.S. troops would invite a much stronger military response.