Houthi Island Advance Tightens Menacing Grip on Vital Red Sea Oil Choke Point

The Houthis reportedly advanced onto Yemen’s strategic Perim Island on Friday, sharply escalating the danger surrounding one of the world’s most important maritime energy corridors. Several news organizations cited Yemeni government sources in reporting the advance, although CNBC could not independently verify the claim.

The reported capture came only one day after the militant group seized Mokha, a Red Sea port roughly 75 kilometers, or 46 miles, north of the Bab el Mandeb Strait. Together, the advances represent a severe setback for Saudi Arabia and the Yemeni forces supported by Riyadh.

Perim Island is a small, rocky territory positioned inside the Bab el Mandeb Strait. The island divides a narrow waterway connecting the Red Sea with the Gulf of Aden, the Arabian Sea, and major global markets.

Control around this passage carries enormous strategic weight because crude oil, refined products, container cargoes, and other commodities depend on reliable access. Any sustained disruption could force vessels onto longer routes, raise freight and insurance costs, and intensify pressure across energy markets.

The offensive also places Iran and aligned forces in a stronger position near two critical oil choke points on opposite sides of the Arabian Peninsula. The Houthis could threaten the Bab el Mandeb, while Iran retains considerable influence over security conditions around the Strait of Hormuz.

Saudi Crown Prince Mohammed bin Salman personally urged President Donald Trump to authorize American military action, MS NOW reported, citing a person familiar with the conversations. The crown prince reportedly spoke with Trump twice on Thursday as Houthi forces moved closer to the Bab el Mandeb.

Trump declined the request, according to the report, and indicated that Washington did not intend to broaden its regional campaign to include the Houthis. The decision leaves Saudi Arabia and its regional partners facing a rapidly worsening security challenge without the direct intervention Riyadh sought.

A senior administration official told CNBC that Washington remains focused on protecting essential national security interests and freedom of navigation in the Red Sea, “while empowering our regional partners to take the lead in managing and resolving regional security challenges.” The official added that the United States is “in continuous dialogue with Saudi Arabia.”

Hamish Kinnear, principal Middle East and North Africa analyst at Verisk Maplecroft, described the loss of Mokha as a “major blow” to Saudi Arabia. The port could provide the Houthis with a platform for further advances toward the coastline and greater leverage over vessels approaching the strait.

“The Houthis were already threatening Saudi shipping from previous positions, but their capture of Mocha opens up the possibility of further advances towards” the Bab el Mandeb coastline, Kinnear said. He warned that the movement could produce a tighter Houthi grip on the choke point.

Kinnear said Tehran and Washington both appear to believe that time favors their respective positions, reducing the likelihood of a fresh truce. That calculation leaves oil traders confronting the prospect of a longer conflict, continued shipping risk, and further strain on refined fuel supplies.

“Oil and gas prices, and more specifically refined products such as diesel, will continue to tick upwards while that remains the case,” Kinnear said. He added that pressure could persist “even if US convoys and Strait of Hormuz export alternatives cushion the price impact.”

The Bab el Mandeb has become even more important since the conflict involving the United States, Israel, and Iran began in late February. With flows through Hormuz remaining below levels recorded before the war, the Red Sea corridor has emerged as an increasingly important alternative for crude shipments moving toward Asian buyers.

Oil prices fell sharply on Friday, yet both major benchmarks remained positioned to finish the week above 100 dollars per barrel for the first time since the middle of May. November Brent futures dropped 3.3 percent to 104.21 dollars per barrel, while October West Texas Intermediate futures declined 3.4 percent to 99.08 dollars.

ING strategists Warren Patterson and Ewa Manthey warned that Saudi energy assets and Red Sea crude exports face growing exposure. “Saudi energy infrastructure and crude oil exports from the Red Sea are increasingly at risk, with the Houthis in Yemen targeting Saudi Arabia,” they wrote.

The strategists said the seizure of Mokha further increases the danger facing shipping near the Bab el Mandeb Strait. Markets are now reassessing both the likely duration and potential severity of the conflict as another crucial energy artery comes under mounting pressure.