Yemen’s Houthi militants have seized the strategic Red Sea islands of Greater and Lesser Hanish along with the port city of Mokha, reinforcing the Iran-backed group’s ability to control a vital global shipping lane and triggering mounting concerns over a new oil supply crisis, according to regional military sources and international reports.
Houthi Control Tightens Across Bab al-Mandab Strait
The swift advance by the Houthi movement has pushed their forces closer to crucial maritime chokepoints. According to officials cited by Agence France-Presse, Houthi fighters seized Zuqar Island, located about 80km north-west of Mokha, following a barrage of rockets and a ground assault using boats. On Friday, local government officials reported that pro-government forces withdrew from the island of Perim—also known as Mayyun—situated in the middle of the Bab al-Mandab Strait, allowing Houthi boats to reach and occupy the territory.
The Bab al-Mandab Strait serves as the southern gateway linking Asia and Europe via the Red Sea and the Suez Canal. The Houthi advance places their fighters just 32km from a US military base in Djibouti on the opposite side of the strait, according to regional shipping data.
Pipeline Closures and Squeezed Global Oil Supplies
The territorial escalation coincides with severe disruptions to Saudi Arabia’s energy infrastructure. According to Rystad Energy, attacks on Saudi Arabia’s east-west pipeline by Iran-allied militants in Iraq forced the closure of a conduit vital for moving oil from the Strait of Hormuz to the Red Sea export hub of Yanbu. Research figures show that between late August and the recent attacks, an average of 2.6m to 4m barrels of oil moved through the pipeline daily, a volume now at risk of disappearing from the market.
“The big question for traders right now is the duration of the east-west outage. Any prolonged disruption and the associated supply loss could easily push prices to the next level higher,” said Tim Waterer, chief market analyst at KCM Trade. Janiv Shah, vice-president of oil markets for Rystad Energy, noted that recent jumps in Brent crude prices reflect a significant loss of supply. On Tuesday morning, Brent crude rose 1.17% to $106.92 a barrel.
Pro Tip: Commodity traders monitor the duration of pipeline outages and stock buffers closely during Red Sea maritime conflicts, as depleted global reserves leave little margin to absorb sudden export halts.
Humanitarian Toll and Displacement Crisis
The renewed fighting has forced tens of thousands of civilians to flee. According to the International Organization for Migration, nearly 94,000 people in Yemen have abandoned their homes since fighting escalated this month. The International Rescue Committee reported that about 200 schools have been converted into shelters in south-western Yemen to house displaced families.
Witnesses in Mokha described chaotic scenes following the Houthi takeover on Wednesday night. “The takeover came without warning. Panic spread throughout the area, forcing people to flee amid distressing scenes of injured people lying in the streets with no-one there to help them,” one resident told BBC Arabic’s Middle East Lifeline programme. Hundreds of people have reportedly fled across the sea into Djibouti.
Frequently Asked Questions
Why are the Hanish Islands strategically important?
The islands of Greater and Lesser Hanish sit approximately 160km north of the Bab al-Mandab Strait, giving forces that control them increased leverage over commercial shipping routes connecting the Red Sea to open ocean markets in Asia and Europe.
What caused the recent spike in oil prices?
Oil prices surged following the closure of Saudi Arabia’s east-west pipeline due to militant attacks, combined with ongoing conflict near key Red Sea shipping lanes and depleted global crude stockpiles, according to market analysts at Rystad Energy and KCM Trade.
Are all commercial vessels being targeted by the Houthis?
Houthi leadership stated that the group does not seek to block all commercial shipping in the Red Sea, maintaining that their restrictions specifically target Saudi-linked ships.
What are your thoughts on how global markets will respond to ongoing Red Sea shipping disruptions? Join the discussion and leave a comment below.
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