Houthi Militants Declare Maritime Embargo Against Saudi Arabia Amid Escalating Regional Tensions

Houthi militants in Yemen on Monday declared a maritime embargo against Saudi Arabia effective immediately, threatening to exacerbate the oil supply disruption triggered by Iran's attacks on tankers in the Strait of Hormuz.

The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the U.S.-Iran war. The strait is a choke point for commercial ship traffic that connects the Red Sea to the Gulf of Aden and global markets.

The militants, in a statement carried by state news, accused the Saudis of laying an "aggressive siege" against them. Tensions escalated last week after they claimed that Riyadh had bombed Sanaa International Airport.

The Saudis have diverted million of barrels of oil per day through a pipeline to an export terminal on the Red Sea. Those exports have acted as a crucial relief valve for global oil markets during the U.S.-Iran war.

A closure of Bab el-Mandeb would block in those barrels, exacerbating the disruption triggered by Iran's attacks on tankers in Hormuz.

But crude oil prices were little changed in response to the Houthis' threat. Brent oil, the international benchmark, had jumped nearly 4% overnight to break $90 per barrel as at least three U.S. service members have died during recent fighting between the U.S. and Iran. Prices subsequently eased after Tehran indicated it was still open to talks with Washington.

The U.S.-Iran war has escalated as the interim deal they signed on June 17 to reopen Hormuz has collapsed. Tehran has repeatedly attacked oil tankers, killing at least two seafarers and injuring more than a dozen this month.

The U.S. has bombed Iran for nine consecutive days and reimposed its naval blockade in response to the tanker attacks. Tehran has launched missiles against U.S. allies in the Gulf in retaliation.

Tanker traffic through Hormuz has fallen as the fighting escalates. The Trump administration has said the strait remains open and millions of barrels of oil are being shipped out daily under U.S. military protection.