
A yearslong ceasefire in Yemen deteriorated significantly this week following military advances by Iran-backed Houthi forces against Saudi-backed Yemeni military units. The Houthis took control of Mokha, a port city located north of the Bab al-Mandeb waterway, according to statements from the militant group and a rival Yemeni commander cited by news organizations.
The escalation in Yemen coincided with renewed armed exchanges between the United States and Iran in the Persian Gulf region. These simultaneous conflicts have disrupted critical global energy infrastructure, driving Brent crude oil prices to approximately $110 per barrel. Capital Economics, a London-based research firm, indicated that fighting across both sides of the Arabian Peninsula presents significant risk for additional energy price increases in the coming weeks. In the United States, gasoline prices have risen 34 percent compared to the same period in the prior year, currently averaging $4.28 per gallon, while diesel prices used for commercial transportation and agriculture have increased 61 percent.
Saudi Arabia’s oil export capacity has contracted substantially, with shipments declining to 3.2 million barrels daily in the previous month—the lowest volume recorded in more than a decade, according to maritime analytics data from Kpler. The Houthis’ attacks on commercial shipping vessels have forced Saudi Arabia to abandon faster routes and instead route petroleum exports through an extended path via the Suez Canal and around Africa to reach Asian markets. The country had previously attempted to bypass regional disruptions using an east-west pipeline to the Red Sea following Iran’s closure of the Strait of Hormuz.
The renewed hostilities have triggered significant humanitarian consequences. The United Nations’ International Organization for Migration reported that at least 18,500 people have been displaced by recent fighting in western Yemen, with families arriving at aid distribution sites that face critical shortages of food and shelter resources. The Houthis launched missile and drone strikes against southwestern Saudi Arabia, resulting in fires at Saudi oil infrastructure that disrupted operations. Saudi Arabia reported more than 70 people sustained injuries in the attacks and attributed them to a response against Saudi airstrikes in Yemen that allegedly killed civilians at a detention facility.
The current conflict represents a continuation of regional instability that began more than a decade ago when Saudi Arabia initiated a coalition military campaign aimed at reversing Houthi control of Yemen’s capital. Despite extensive military intervention, the Houthis maintain authority over Sanaa. The United States characterizes the group as an Iranian regional proxy, while Iran’s government has characterized the Houthis as an independent resistance movement operating under their own decision-making authority.
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