Iran-backed Houthis seize key port in Yemen, advance on another vital oil choke point

Iran-backed Houthi militants have seized control of the Yemeni port city of Mokha on the Red Sea coast, significantly weakening Saudi Arabia and their allied Yemeni forces in their ongoing conflict with the United States. The Houthi takeover of Mokha is seen as a major setback for the coalition, potentially increasing Iranian pressure on two key oil chokepoints: the Bab el-Mandeb Strait and the Strait of Hormuz.

The city, located about 46 miles north of the Bab el-Mandeb Strait, quickly became a strategic target due to its vital role in global trade. The Bab el-Mandeb Strait, a waterway connecting the Red Sea to the Gulf of Aden, has become increasingly important as an alternative route for crude oil heading towards Asia. Analysts warn that the Houthi advance could have far-reaching consequences for global trade, especially if the group escalates threats or attacks on Red Sea shipping.

The Houthi takeover of Mokha represents a significant blow to Saudi Arabia, potentially giving the militant group greater control over the Bab el-Mandeb Strait. Both Iran and the United States see the war as favoring them, as time is on their side, making a new truce unlikely. Oil prices have risen in recent days, with both Brent crude and U.S. West Texas Intermediate futures trading above $100 per barrel.

Energy market participants are reevaluating the ongoing conflict, as flows through the Strait of Hormuz remain well below pre-war levels. The situation surrounding the Houthis' control of the Red Sea port of Mokha has raised concerns about the vulnerability of Saudi energy infrastructure and crude oil exports from the Red Sea.