Yemen s Houthis move to control crucial waterway—our research maps the countries most at risk

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-28 • Permanent link

Rumblings from the Red Sea have sent shockwaves through the global energy market, as Yemen's Houthi rebels seize control of the strategic Bab al-Mandab waterway. The strategic chokepoint, crucial for international shipping lanes, has been under Iranian influence since the 2015 Iran nuclear deal. According to sources, the Houthis have taken control of the area's key infrastructure, sparking concerns about potential disruptions to global trade.

Investors are bracing for the worst, as the move threatens to exacerbate the already precarious humanitarian situation in Yemen. The International Monetary Fund has warned that the conflict could lead to a 20% decline in the country's GDP, while the World Bank has estimated that the crisis could displace up to 500,000 more people. The impact on global markets is already being felt, with oil prices surging 5% in response to the news.

Experts point to a long history of instability in the region, dating back to the 1990s when the Houthi movement first emerged. The group's ties to Iran have only strengthened over the years, with the Iranian Revolutionary Guard Corps providing significant military and financial support. "This is not a surprise to anyone," said Dr. Ahmed Al-Mansour, a Middle East expert at the Brookings Institution. "The Houthis have been building their strength for years, and it's only a matter of time before they make their move.

As the situation continues to unfold, analysts are warning of a range of potential risks and opportunities. The Houthis' control of the Bab al-Mandab could lead to increased tensions between Iran and its regional rivals, while also giving the Iranian regime a significant boost in its efforts to project power in the region. In the short term, investors will be watching closely for any signs of disruption to global shipping, while policymakers will be weighing the implications for regional stability.