Trump will attend the dignified transfer of 4 US service members killed in the Middle East

Amid the ongoing US-Iran war, a new frontline in West Asia has triggered concerns over wider escalation in the region and a renewed threat to global maritime traffic. Yemen’s Iran-aligned Houthis announced this week that they would impose a naval blockade on Saudi Arabia, its long-time rival amid the ongoing conflict.

The move comes in retaliation for an attack on Sanaa International Airport last week. The Houthis’ announcement has raised concerns over disruption of maritime traffic through the Bab al-Mandeb Strait, a critical maritime chokepoint even as the Strait of Hormuz remain largely closed for shipping traffic.

What is going on between Yemen and Saudi? The Houthis order targets only Saudi-linked vessels passing through Bab al-Mandeb. Several tankers carrying Saudi crude oil reversed course on Tuesday after the Houthis-led blockade on shipping through Bab al-Mandeb.

The announcement came after the Houthis blamed Riyadh for attacking Sanaa airport last week and breaking a four-year ceasefire. A US Navy-led maritime information center however said there had been no confirmed attacks on vessels in the Red Sea in the last 48 hours, according to Iran International.

The Houthis, in a letter to shipping companies, warned that vessels loading or discharging oil at Saudi ports could be attacked anywhere within the reach of their forces, news agency Reuters reported. The Houthis’ armed forces said they were declaring “a maritime embargo against the criminal Saudi enemy, based on the equation of ‘an eye for an eye’ in response to what they called “an unjust and oppressive siege” imposed on Yemen by the Saudis.

The Saudi-led coalition in Yemen has said it would respond to the Houthis with force. Story continues below this ad Why Bab el-Mandeb Strait is crucial to Saudis energy exports The Bab al-Mandeb strait, situated between Yemen and Djibouti and Eritrea, is one of the world’s most important shipping routes, including for oil exports worldwide.

The narrow waterway, connecting the Red Sea to the Gulf of Aden, is just 29 km wide at its narrowest point and is a key route for transiting through the Suez Canal. According to Al Jazeera, around 4.1 billion barrels of crude oil and refined petroleum products passed through the strait in 2024, about 5 per cent of the total energy supply.

However, the Houthis, which control much of northern and western Yemen and its coastline, sits at the narrowest point, much like Iran’s control over the Strait of Hormuz. The current development between the Saudi and Iran has led to a potential Hormuz-like situation as Saudi depends on the strait for its oil and energy exports.

Meanwhile, Iran had also been pressing the Houthis to close the Bab al-Mandeb gateway to the Red Sea if the US continued to attack Iranian power infrastructure. Story continues below this ad A complete closure of the strait would reduce global oil supply by 7 per cent as it would leave most of Saudi oil exports unable to leave the region.

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Oil prices rose to near six-week highs today on mounting concerns about disruptions to key Middle Eastern supply routes because of escalating hostilities between the US and Iran and threats to shipping by the Iran-backed Houthi militia in Yemen. Brent crude futures rose $2.

84, or 3.12%, to $93.85 a barrel this morning, while US West Texas Intermediate crude climbed $2.93, or 3.47%, to $87.27. Both benchmarks touched their highest levels since June 11. The US military said that it carried out an 11th consecutive night of attacks.

The US attacks came a short while after the Kuwaiti army said its air defences were intercepting Iranian drones today. The renewed conflict over control of the Strait of Hormuz is occurring amid increasing fears of further disruptions to global energy supplies after the Iran-aligned Houthis opened a new front in the war by threatening to target vessels carrying Saudi oil in the Bab el-Mandeb strait and announcing a naval blockade of Saudi Arabia.

"The energy market now has the dual-strait worry, with the Bab el-Mandeb Strait looking like it could join the Strait of Hormuz as a hot spot, as traders closely watch shipping numbers in the Red Sea," said Tim Waterer, chief market analyst at KCM Trade.

The Bab el-Mandeb at the southern entrance to the Red Sea has become an increasingly important route for Saudi Arabian crude exports as traffic through the Strait of Hormuz has fallen sharply since a ceasefire between the United States and Iran collapsed earlier this month.

Three oil tankers loaded with Saudi crude for China and India made U-turns in the Red Sea yesterday, heading towards the Suez Canal rather than braving the Yemeni coast following a warning from the Houthis. "The (Houthi) threat has led tankers to divert which could further pressure the physical market and Saudi exports, contributing to push prices to the upside," said Frank Walbaum, market analyst at trading platform Naga.

com. In response to the Houthi warnings, Asian refiners are seeking to ship crude oil from Saudi Arabia's Red Sea port of Yanbu through the Suez Canal and around Africa. While global oil stockpiles have drawn amid the conflict, the latest US data is showing some building of inventories.

Data from the American Petroleum Institute showed that US crude and distillate inventories rose last week, while gasoline stockpiles fell, market sources said. The inventory data comes ahead of official figures from the US Energy Information Administration later today.

Equinor reported adjusted profits of $11.5 billion for the three months ending June, nearly double the prior-year amount. The results were driven by higher oil and gas prices and increased production volumes during a period of elevated Brent crude prices, which ranged from about $75 to over $100 per barrel.

Company statements attributed the gains to market conditions following reduced shipments through the Strait of Hormuz and subsequent shifts in global supply.

Oil prices rose about 4% on Wednesday, with Brent crude futures at $94.23 and West Texas Intermediate at $87.46. U.S. Central Command carried out its eleventh consecutive night of strikes on Iranian military sites, including operations centers and logistics infrastructure.

U.S. Secretary of State Marco Rubio said at an ASEAN meeting that the Strait of Hormuz remained a disputed issue, accusing Iran of not engaging seriously in talks.