Overview
- Houthi forces said they attacked two Saudi oil tankers, naming the Encelia and the Layla, after declaring a naval blockade of Saudi-linked shipping through the Bab el‑Mandeb, a claim reported by multiple news agencies on Thursday.
- The U.S. military has carried out repeated nightly strikes on Iranian coastal and missile targets and President Trump vowed to hold Iran responsible for Houthi actions, promising major military punishment if attacks continue.
- Brent crude jumped above $100 a barrel after the reported Red Sea strikes, and shipping firms rerouted tankers, while insurance costs for southern Red Sea transit rose sharply.
- The Houthi move risks closing Saudi Arabia’s alternate export route through the Red Sea that had been used to bypass the effectively closed Strait of Hormuz, which would tighten global oil supplies and raise fuel and goods prices.
- Diplomatic mediation efforts are active but stalled as the campaign spreads geographically, increasing the chance of wider regional escalation and adding pressure on households, businesses, and governments to manage higher energy and shipping costs.