Full Breakdown
Houthis Declare Maritime Blockade on Saudi Arabia, Threatening Red Sea Oil Flow
7/22/2026, 12:47:36 AM
Core Event
The statement, relayed to Reuters, offered no details on how the blockade would be enforced but emphasized an “eye for an eye” rationale. The Houthis control territory adjacent to the Bab al-Mandeb Strait, the narrow chokepoint that links the Red Sea to the Gulf of Aden and serves as a key conduit for Saudi oil exports.
Background & Context
The Houthis seized Yemen’s capital, Sanaa, in 2014 and have been engaged in a civil war that prompted a Saudi-led coalition intervention in 2015. Since the Israel-Hamas war began in October 2023, the group has carried out more than 100 attacks on commercial vessels in the Red Sea, pausing only after a Gaza ceasefire in October 2025. With the Strait of Hormuz effectively closed after the United States and Israel launched a war on Iran in late February, the Bab al-Mandeb has become an alternative route for oil shipments that cannot pass through Hormuz.
Data & Statistics
- In 2024 roughly 4.1 billion barrels of crude and refined products—about 5 % of global supply—transited the Bab al-Mandeb.
- Analysts estimate that shutting the strait, combined with the Hormuz closure, could affect up to 25 % of world oil and gas supplies.
- Saudi Arabia routes about 70 % of its energy exports through the Red Sea; the East-West (Petroline) pipeline operated by Aramco moves around 4 million barrels per day (bpd) from the Abqaiq processing centre to the Yanbu port.
- Ship-tracking data show Yanbu shipments averaging four million bpd in recent weeks, up from roughly 973,000 bpd a year earlier.
- Marine insurance premiums rose to approximately 0.75 % of a vessel’s value, up from 0.3 % on the preceding Friday, adding hundreds of thousands of dollars to a typical seven-day voyage.
- Brent crude futures traded at $89.70 per barrel, compared with an average of $70 per barrel before the U.S.–Israel war on Iran.
Official Statements & Responses
Houthi military spokesperson Yahya Saree told televised audiences that the blockade is a direct response to a “continued Saudi siege” and warned of “total and harsh escalation” against any retaliation. The Saudi Foreign Ministry condemned the declaration and pledged to take “all necessary measures” to protect Saudi vessels.
Why It Matters / Impact
Disrupting the Bab al-Mandeb could curtail Saudi oil exports, push global oil prices higher, and raise shipping costs through increased insurance premiums. Higher crude prices are expected to generate inflationary pressure in both Western and Asian economies, potentially raising fuel costs for consumers and industries worldwide. Countries that rely heavily on Saudi crude—such as China, South Korea, Japan and India—could face higher import bills and greater reliance on spot cargoes, while European markets may see elevated prices for refined petroleum products.
Verbatim Quotes
- “If you’re [US President] Donald Trump and you want to see oil down at $70 a barrel, that is not going to happen,” — Michael Stephens
- “It is going to cause inflationary pressure in Western economies, and actually in Asian economies as well,” — Michael Stephens
