Iran Shuts Hormuz and Houthis Choke Bab al-Mandab: 147,000 Flee Yemen in 18 Days as Two Oil Routes Close

Iran said it will keep the Strait of Hormuz closed until the United States meets its demands, while Iran-backed Houthi rebels in Yemen have seized control of the Bab al-Mandab strait, shutting down a second critical oil route in the Middle East [245758][242818][243385].

Iran's parliament speaker said Tehran has sent its conditions to Washington through intermediaries and ruled out reopening the Strait of Hormuz until those conditions are met. He did not say what the conditions are or who the intermediaries are, and the United States has not responded publicly [245758].

The Strait of Hormuz is a narrow waterway through which about one-fifth of the world's oil passes. Closing it can raise global oil prices and slow trade, and shipping companies and oil markets are watching the strait closely [245758].

In Yemen, Houthi rebels have made a rapid advance along the Red Sea coast, capturing thousands of kilometres of territory and seizing strategically important islands. They now control the Bab al-Mandab strait, a vital chokepoint for global energy shipments [242818].

The rebels captured two strategic islands in the Red Sea, Greater and Lesser Hanish, which lie near the Bab al-Mandab strait — a narrow waterway connecting the Red Sea to the Gulf of Aden through which millions of barrels of oil pass every day [241596]. Houthi forces also recently took the port of Mokha and Perim island, both in the strait [241596].

Traffic through the Bab al-Mandab has nearly stopped. Only four vessels passed through the vital waterway in the last 24 hours. The strait is a key alternative to the Strait of Hormuz for global shipping [243385].

With both routes now under threat, the economic consequences could be severe. The Iran war has forced Saudi Arabia to move oil through its east-west pipeline to Red Sea ports, but drone strikes, blamed on an Iran-backed militia in Iraq, have shut that pipeline down. One estimate suggests a month-long closure could cut global crude supply by 120 million barrels [242818].

Sending oil north is slower and more expensive for Asian markets, and it does not protect ships from Houthi attacks, as the rebels are also targeting oil facilities [242818].

The Houthis are also targeting Saudi Arabia, which backs the Yemeni government. This escalation may benefit Iran, which supports the Houthis and wants to push oil prices higher [242700].

Fighting is intensifying across Yemen. On Saturday morning, a fire broke out near Riyadh's main airport after Houthis said they launched missiles and drones at Saudi Arabia — the first Houthi strike on the Saudi capital. In Yemen, Houthi rebels are pushing east in their fight against Saudi-backed government forces [245715].

Government forces in southwestern Yemen said they downed an explosive-laden drone and struck Houthi positions as violence flared near one of the world's busiest sea routes. The drone was brought down in Al-Dhalea province, and the same forces reported airstrikes in Taiz province. Both areas lie close to the Bab al-Mandab strait, through which roughly one-tenth of global trade passes [243367].

Yemeni warplanes also struck Houthi positions east of Taiz city on Wednesday, targeting areas around Al-Qasr roundabout as fighting in Taiz province intensified [244675].

Civilians are paying the highest price. Nearly 147,000 people were forced from their homes in Yemen in just 18 days this month, according to the government's Executive Unit for Displaced Persons, which reported that 146,943 people were displaced between September 1 and 18 [245748]. More than 100,000 people have been forced to flee, and in a country where half the population depends on humanitarian aid, civilians are bearing the brunt of the escalation [242818].

A rebel offensive in Yemen has also thrown Saudi Arabia into crisis. Yemeni forces that Riyadh helped arm and train were overrun by the Iran-backed Houthis, exposing the weakness of Saudi Arabia's strategy in the conflict and raising serious questions about the kingdom's military approach and its ability to protect its interests in the region [243743].