Yemen: Houthis Tighten Control of Strategic Red Sea Towns

Yemen's Iran-aligned Houthis have seized the strategic island of Perim in the Bab el-Mandeb Strait, potentially tightening their hold on a crucial shipping route. The Yemeni government forces have reportedly withdrawn from Perim and also captured the coastal town of Dhubab, Reuters reported. If the Houthis gain full control of the Bab el-Mandeb Strait, it could benefit Iran, its key supporter, by reducing supplies through a second major transit corridor and potentially causing oil prices to surge.

Saudi Arabia, the world's largest oil exporter, heavily relies on the Red Sea route, which has replaced the Iran-adjacent Strait of Hormuz as the primary crude export channel since the latter was effectively closed due to the ongoing conflict. Satellite imagery showed smoke near Saudi Arabia's East-West oil pipeline, a vital mechanism for the kingdom to divert crude exports from Hormuz, but Saudi Arabia has not confirmed any incidents.

The Saudi government and state oil giant Aramco have not yet commented on the smoke seen in the imagery verified by Reuters. Saudi crude supply experienced a sharp decline of 2.3 million barrels per day in August to 6 million barrels per day, the lowest level in over three decades, due to attacks on ships in the Bab el-Mandeb Strait by groups linked to Yemen's Houthis.

Global oil prices are on track to reach over $100 per barrel for the first time since mid-May, though they were slightly lower on Friday as Middle Eastern foreign ministers attempted to devise a temporary arrangement to manage shipping through the Straits of Hormuz. Yemeni government forces plan to retake areas seized by the Houthi militants along the Red Sea coastline, including the road leading to the coastal city of Mocha and the Red Sea islands of Hanish.

Military spokesman Colonel Majed al-Nazili urged civilians to avoid using the route between Taiz and Mocha and refrain from interacting with Houthi-owned equipment. Fighting between the Houthis and Yemeni government forces intensified recently, with the Iran-aligned group shifting its focus towards controlling Yemen's long coastline.

The dramatic Houthi advance down Yemen's Red Sea coast this week was reportedly guided directly by Iran's Revolutionary Guards, who aim to open a new front in their ongoing war with the US, according to Yemeni government, Iranian, and regional sources. Iran has been providing the Houthis with ammunition, equipment, and senior officers to carry out their attacks on Saudi Arabia, though Iran publicly denies giving any military guidance, stating the group is not a proxy.

Saudi Arabia has been targeting Houthi targets in Yemen but has refrained from attacking the strategic areas the group seized this week. Saudi Crown Prince Mohammed bin Salman urged US President Donald Trump to launch military strikes against the Houthis, but Trump declined, stating that the administration does not intend to engage in direct military action against the Houthis at the moment.

Instead, the US is reportedly increasing its support for Saudi Arabia while striving to avoid direct involvement in the conflict. Gulf foreign ministers are scheduled to meet with their Iranian counterpart in Oman to work on a temporary deal to handle shipping through the Strait of Hormuz, as reported by the Financial Times. The meeting is set to take place in Salalah, Oman, on Monday, according to two people briefed on the situation, though Reuters could not independently confirm the report.