Houthi Attacks on Saudi Oil Tankers Escalate Tensions in Red Sea

Houthi rebels in Yemen, backed by Iran, announced attacks on two Saudi oil tankers in the Red Sea. This action threatens to widen the Iran conflict as global oil prices briefly exceeded $100 a barrel. The Houthis have also threatened other key trade routes, impacting an already stressed global economy due to Iran’s closure of the Strait of Hormuz.

Control of this strait, through which a fifth of the world’s oil and gas travels, is a point of contention between Iran and the U.S. Currently, the U.S. has conducted multiple nights of airstrikes across Iran. President Donald Trump threatened significant military action against the Houthis if attacks on ships continue, linking them as an Iran surrogate.

The resulting economic tension caused Brent crude oil prices to surge by 6%, fleetingly crossing the $100 mark, a peak not seen since last month when a temporary peace deal had collapsed.

Iraqi Prime Minister Ali al-Zaidi, who maintains ties with both the U.S. and Iran, visited Tehran to advocate for peace and diplomatic discussions. This comes amid rumors of pessimism from Gulf states about potential conflict resolution. A diplomat, preferring anonymity, stated that countries including Pakistan and Turkey are pushing for de-escalation.

Impact on Global Trade Routes

The Houthi-operated SABA news agency detailed their attack on the tankers Encelia and Layla in the Red Sea, causing fires but no casualties. This marks their first attack on a vessel since initiating a blockade on Saudi-linked shipping through the Bab el-Mandeb Strait. This blockade was a response to Saudi Arabia’s actions in Yemen, including an airport attack in Yemen’s capital, Sanaa.

Bab el-Mandeb is crucial as it connects the Red Sea to the Gulf of Aden, with 12% of global trade transiting through it. The Saudi Press Agency confirmed fires on the Encelia but did not address the Layla.

The UK Maritime Trade Operations Center reported a tanker hit by an unknown projectile southwest of Al Shuqaiq, Saudi Arabia. Lloyd’s List Intelligence highlighted the double impact these attacks have on oil shipments, as Saudi Arabia has rerouted exports due to Persian Gulf bottlenecks. The Houthi threats raise concerns about the sustainability of this alternate route.

Rebel statements about a blockade involved targeting unrelated vessels during the Gaza conflict, disrupting global trade.

Strait of Hormuz Dispute

Iran claims rights over the Strait of Hormuz, previously toll-free and open. It has hit ships using a route charted by U.S. forces, designed to be outside Iranian control.

In retaliation to Iran’s actions, the U.S. expanded airstrikes and reinstated a naval blockade at Iranian ports. The rhetoric has intensified with Iran’s Foreign Minister Abbas Araghchi anticipating an “eye for an eye” policy against U.S. strikes. U.S. Secretary of State Marco Rubio stated Trump’s approach as “a head for an eye.” Rubio indicated that prices would keep rising unless Iran adjusted its stance.

Iranian media covered U.S. missile strikes in locations near Ahvaz, Ramshir, and Andimeshk, leading to casualties. U.S. Central Command explained their strikes aim to weaken Iran’s threat to civilian maritime traffic and reclaim control over the Strait of Hormuz.

Iran’s retaliatory strikes targeted energy and desalination facilities in Gulf nations. Jordan intercepted missiles, Bahrain reported drone threats, and Kuwait faced border attacks, which might have been responses to U.S. aggression at the Iran-Iraq border.

Becatoros contributed to this report from Athens, Greece, and Binkley from Washington. Additional contributions were made by Munir Ahmed, Bassem Mroue, Michelle L. Price, Jim Gomez, Qassim Abdul-Zahra, and Matthew Lee.