Overview
- Houthi forces captured Mokha and key islands on the Red Sea coast this week, giving them positions that strengthen their ability to monitor or threaten passage through the Bab el‑Mandeb Strait.
- Drone strikes that disabled Saudi Arabia’s East–West pipeline removed a major Hormuz bypass and are expected to keep the line mostly out of service for weeks, a disruption traders say could remove roughly 4% of global supply.
- Gulf diplomacy paused after Oman postponed a planned meeting with Iran to discuss Hormuz control, and Tehran’s IRGC and U.S. Central Command issued conflicting accounts about recent damage to the tanker El Gaia.
- Major carriers have begun a cautious, selective return to Suez transits, but many ships still reroute around the Cape of Good Hope and insurers and freight costs have risen as a result.
- The fighting has displaced tens of thousands of Yemenis and prompted limited U.S. support focused on intelligence and maritime protection rather than broad military intervention, increasing the chance of sustained higher oil prices and longer shipping times.