Houthis advance along Yemeni coast, threaten Saudi oil exports in the Red Sea

The Iran-aligned Houthi rebels extended their control along Yemen's Red Sea coast on Thursday, seizing the port city of Mocha and advancing to strategic islands, according to military sources. This move comes shortly after President Donald Trump expressed optimism that the Iran conflict would conclude following the US midterm elections.

The Houthis have now gained leverage over the Bab el-Mandeb Strait, a crucial global shipping route and the southern exit point of the Red Sea. If the rebels take control of this waterway, the opposing side, Iran, could gain a significant advantage in the ongoing war, potentially driving up oil prices and further complicating President Trump's efforts to exit the conflict before the November midterms.

The Yemeni government's humanitarian operations coordination center reported that while Red Sea navigation is generally safe, Saudi vessels face heightened risks. Saudi Arabia, the world's leading oil exporter, has relied on the Red Sea route to circumvent the Iran-hostile Strait of Hormuz, which once accounted for a fifth of global oil trade.

Yemeni forces are now moving south along the Red Sea coast to secure Dhubab on the Bab el-Mandeb Strait, located opposite Perim Island, to solidify their hold on this vital maritime passage.

The United Nations Special Envoy for Yemen, Hans Grundberg, emphasized the urgent need for international action to address the intensifying conflict, describing it as a new and more dangerous phase. The U.S. envoy at the U.N. Security Council meeting, Jenifer Neidhart de Ortiz, accused the Houthis of acting as agents of Iran, accusing them of undermining freedom of navigation in the region.

Iran's foreign ministry rejected these accusations, calling for dialogue and rejecting any efforts to blockade or target the Houthis militarily. The Houthis, in turn, claimed their actions were defensive, pledging to cease hostilities once hostilities against Yemen ceased.

Oil prices surged on Thursday, with Brent crude prices reaching $105 a barrel, marking a 4% increase and the U.S. national average diesel price surpassing $6 a gallon for the first time. This jump reflects concerns over potential supply disruptions resulting from the escalating hostilities. Additionally, the U.S. Treasury Department imposed new sanctions on entities aiding Iran's Hezbollah and other proxies, part of Operation Economic Outcast aimed at curbing Tehran's war funding.

The conflict unfolded amid the biggest wave of U.S.-Iran strikes on Gulf shipping since the war began in late February, with Saudi civil defense authorities issuing emergency alerts in Khamis Mushait for the fourth consecutive day due to Houthi attacks. Iran's Revolutionary Guard Navy reportedly struck a U.S. unmanned vessel near the Strait of Hormuz, further escalating tensions. As the situation escalates, the international community faces mounting pressure to mediate and prevent the crisis from spiraling further.