The Iran-backed Houthi movement made a significant advancement on Friday by reportedly seizing Yemen’s strategic Perim Island, further consolidating their influence near the Bab el-Mandeb Strait. This recent success followed the capture of the port city of Mokha, also on Yemen’s Red Sea coast, marking a swift and impactful offensive. Together, these gains threaten two vital oil chokepoints straddling the Arabian Peninsula: Bab el-Mandeb in the west and the Strait of Hormuz in the east, potentially allowing Iran and its proxies to exert considerable control over key global shipping routes.

This escalating situation prompted Saudi Crown Prince Mohammed bin Salman to reach out directly to U.S. President Donald Trump, urging American military intervention to halt the Houthis' advance near the Bab el-Mandeb Strait. Despite two calls on Thursday, Trump declined to broaden the U.S. military campaign to include direct action against the Houthis. Instead, the U.S. administration emphasized its commitment to protecting critical national security interests, including freedom of navigation in the Red Sea, while encouraging regional partners like Saudi Arabia to manage the tensions.

The capture of Mokha, situated about 75 kilometers north of the Bab el-Mandeb Strait, is considered a major strategic setback for Saudi Arabia. It raises the possibility of the Houthis tightening their grip on this key maritime chokepoint, potentially disrupting global trade and shipping routes. Analysts warn that ongoing hostilities likely mean continued upward pressure on oil and refined fuel prices, especially diesel, amid the prolonged conflict and heightened regional instability.

Oil prices experienced a sharp decline on Friday but remain elevated, with Brent crude trading around $104 per barrel and West Texas Intermediate near $99. The conflict’s deepening threat to Red Sea and Gulf transport corridors has driven energy market participants to reassess the conflict’s potential duration and impact. Meanwhile, Saudi energy infrastructure and crude exports face increasing risks due to Houthi attacks, reflecting the fragile state of regional security as the conflict remains unresolved.