The Iran-backed Houthis have seized Yemen's Red Sea coast and strategic islands this month, positioning themselves to threaten the Bab el-Mandeb strait, one of the world's most critical maritime chokepoints. Disruption to this route could have far-reaching consequences for global oil supplies, shipping costs, inflation and economic growth. Oil prices have already surged above $100 per barrel following a drone strike that shut a key Saudi oil pipeline, whilst the United States has rebuffed Saudi Arabia's repeated requests to intervene in the conflict.

The Houthis, who have controlled Yemen's capital since 2014, routed Saudi-backed government forces in their rapid coastal advance this month and are now attempting to seize the Kahboub Mountains in Taiz and Lahij provinces. Saudi Arabia has responded with hundreds of air strikes, while the Houthis have retaliated with attacks on Saudi territory, including strikes on Riyadh and Aramco facilities in Yanbu. The group claims it is only targeting Saudi-linked vessels, though such ships may be owned, financed or operated by international companies, affecting supply chains across Europe and Asia. Since 2023, the Houthis have reportedly extracted informal payments from shipping agencies in exchange for safe passage through the Red Sea.