Yemen's Houthis capture a Red Sea island in threat to shipping

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-12 • Permanent link

Suddenly, news emerged that Iranian-backed Houthi rebels in Yemen have captured a strategic island in the Bab el-Mandeb Strait, a crucial waterway that connects the Red Sea to the Gulf of Aden. The island, known as al-Hudaydah, is a vital hub for international shipping, with over 8,000 vessels passing through the strait every year. Saudi Arabia's state-owned oil giant, Saudi Aramco, has been particularly reliant on this route to export its oil, with the majority of its crude oil shipments passing through the strait. The capture of the island has sparked concerns about the security of this vital shipping lane.

Rising tensions in the region have sent shockwaves through the global energy market, with oil prices surging by 5% in the wake of the Houthi capture. Investors are growing increasingly concerned about the potential for further disruptions to the global supply chain, which could have far-reaching consequences for the global economy. As the world's top oil exporter, Saudi Arabia's ability to maintain its oil exports is crucial to meeting global demand, and any disruption to this supply chain could have significant implications for energy prices and economic growth.

Historically, the Bab el-Mandeb Strait has been a hotbed of conflict, with various factions vying for control of the strategic waterway. The Houthi rebels, who are backed by Iran, have been waging a brutal insurgency against the Yemeni government since 2015, with the Saudi-led coalition intervening in 2015 to support the government. The capture of al-Hudaydah is a significant victory for the Houthis, who have been seeking to expand their control over the country's ports and shipping lanes.

As the situation in Yemen continues to deteriorate, analysts are warning that the capture of al-Hudaydah could have significant implications for global energy security. The International Maritime Organization estimates that over 70% of the world's oil exports pass through the Bab el-Mandeb Strait, making it a critical chokepoint for the global supply chain. With the Houthi rebels now in control of the island, there are growing concerns about the potential for further disruptions to shipping, which could have significant consequences for energy prices and economic growth.