Tension has increased again between Houthi rebels and Saudi Arabia in Yemen. The Houthis have threatened a maritime blockade against Saudi Arabia, while the Yemeni government has announced their elimination. Saudi Arabia has also warned of strict action. This new tension has increased concerns about oil supply and economic crisis around the world. Let us know what effect the increasing tension on the Red Sea and Bab al-Mandeb will have on global oil supply and prices.

Yemen government's announcement

Rashad al-Alimi, chairman of Yemen's Presidential Leadership Council, said the time has come to end the suffering caused by the terrorist Houthi militia.

1. Al-Alimi appealed to all citizens of Yemen to unite in support of the state and to join the armed forces in ending the Houthi occupation.
2. In his statement given on TV, he made a big announcement saying that Yemen will resume its oil exports from July 20. The income generated from this will be used for the welfare of citizens across the country.
3. The Yemen government clarified that this plight of Yemenis is a direct result of the Houthis' efforts to seize power and implement the agenda of the Iranian regime.

Houthi counterattack

Amidst this stance of the Yemen government, the Houthis have taken aggressive steps and announced a maritime blockade on Saudi Arabia.

• Houthi spokesperson Yahya Sari released a video on social media platform X and said that this ban will come into effect immediately.
• The Houthis allege that Saudi Arabia has laid siege to Yemen's capital Sanaa, in response to which this blockade is being imposed.
• Last week, Saudi Arabia attacked Sanaa's airport, in response to which the Houthis targeted the southern Saudi airport. This is the most severe military confrontation between the two after 2022.

Saudi Arabia's strong response

Saudi Arabia has also reacted very strongly to this threat of Houthis. The Saudi Foreign Ministry has strongly condemned this statement of the Houthis.

1. Saudi Arabia has made it clear that it will take all necessary measures to protect its ships under the United Nations Law of the Sea (UNCLOS) and international laws of 1982.
2. The Saudi ministry said that the Houthi militia is dragging Yemen into regional conflict and is increasing the problems of ordinary Yemenis by targeting merchant ships in the Red Sea. The Houthis have rejected all initiatives to start flights from Sanaa airport.
3. Major General Turki al-Malki of the Coalition Joint Forces Command warned that security measures had been taken for ships passing through the Bab al-Mandeb Strait and that any threat from the Houthis would be dealt with swiftly and sternly.

Crisis looming on the global oil market

The biggest impact of this tension is on the global oil market. The Houthis' announcement means that Saudi Arabia's millions of barrels of oil exports from the Red Sea are in danger. Due to the ongoing attacks between America and Iran, maritime traffic on the Strait of Hormuz is almost at a standstill. After the news of this latest crisis, the prices of global benchmark Brent crude saw a huge jump of up to 3.8% and a fall of up to 2.3% on Monday. Saudi Arabia has played a very important role in keeping global energy prices stable during the US-Iran war, hence the threat to Saudi Arabia is an alarm for the whole world.

This dispute is not limited to just Yemen or Saudi Arabia, rather it is part of the ongoing proxy war between Saudi Arabia versus Iran. Iran provides arms and funding to the Houthis, while Saudi Arabia supports the legitimate government of Yemen. The Red Sea and the Bab el-Mandeb Strait are the world's most important chokepoints. Any kind of blockade here directly breaks the supply chain between Europe and Asia, causing inflation and energy crisis.

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