Houthi offensive seizes Yemen's Red Sea coast, oil hits $110

September 18, 2026 at 07:55 PM2 min

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Houthi rebels have seized nearly all of Yemen's Red Sea coastline, including the Bab al-Mandab Strait, a key chokepoint for global trade. The escalation has contributed to a surge in oil prices, which rose to $110 on September 15, the highest in months. Saudi Arabia has temporarily shut down a crucial oil pipeline after a drone attack it blamed on a pro-Iranian militia in Iraq.

Key Facts

Houthi rebels have seized nearly all of Yemen's Red Sea coastline, giving the Iran-aligned group control of the Bab al-Mandab Strait.
Oil prices rose to $110 on September 15, the highest in months, before falling slightly.
Saudi Arabia temporarily shut down its critical East-West oil pipeline after a drone attack blamed on a pro-Iranian militia in Iraq.
The Bab al-Mandab Strait accounts for around 6 percent of the world's seaborne-traded oil.
US officials met Houthi leaders in neighboring Oman on September 15.

Houthi Offensive

The Houthis launched a lightning offensive against Yemen's internationally recognized government last week, capturing the key port city of Mokha and islands in the Red Sea. Scores have been killed in Yemen since the offensive began. Saudi Arabia, which backs Yemen's government, has carried out air strikes against Houthi targets. The rebels have launched drones and missiles at the kingdom. Riyadh has pleaded for military support from the United States, but President Donald Trump appears to have rebuffed those calls.

Oil Market Impact

The escalation in the Houthi-Saudi conflict has contributed to a recent surge in oil prices. A prolonged shutdown of Saudi Arabia's critical East-West pipeline or a Houthi attempt to block the Bab al-Mandab Strait could send shockwaves around the world. American investment bank Goldman Sachs has warned that global oil prices could reach $120 a barrel if the Iran and Yemen conflicts continue. Even before the recent escalation in Yemen, energy markets were rattled by the Iran war, which has effectively closed the Strait of Hormuz. Tehran and Washington continue to trade sporadic strikes, including on shipping.

US-Houthi Diplomacy

The Houthis agreed a cease-fire with Washington last year after a monthslong US bombing campaign. The Houthis have given Washington assurances that they will not block the Bab al-Mandab Strait or attack international shipping in the Red Sea, except for Saudi vessels, according to reports. US officials met Houthi leaders in neighboring Oman on September 15. Thomas Juneau, a Middle East expert and professor at the University of Ottawa, said the US logic is very clear.