How did the Strait of Hormuz closure affect Saudi oil exports?

After the Strait of Hormuz closure, Saudi Arabia diverted more than 70% of its crude exports to its Red Sea port of Yanbu.

How is the current situation different from the Houthi attacks in 2023?

In 2023, Gulf oil could still move through Hormuz, and ships could avoid the Red Sea by sailing around Africa. Today, oil is being loaded on the Red Sea.

What is the Houthi stance on the Iran war?

The Houthis remained mostly quiet during the latest Iran war, but the recent announcement signals a change in their position.

Houthis Ban Israel-Linked Ships from Red Sea, Threatening Energy Lifeline

Q: What did the Houthis announce?

The Houthis announced a ban on ships linked to Israel from the Red Sea, following renewed Israeli attacks on Iran.

Q: What are the potential risks to energy markets?

Any actual disruption to Red Sea shipping could push oil prices higher and increase shipping costs, especially with the Strait of Hormuz closed.

Yemen's Iran-aligned Houthis announced a ban on ships linked to Israel from the Red Sea, following renewed Israeli attacks on Iran. This threatens Saudi Arabia's alternative oil export route after the Strait of Hormuz closure.

Yemen's Iran-aligned Houthis said Monday they would ban ships linked to Israel from the Red Sea, after Israeli forces renewed attacks on Iran. The move raises new risks for global shipping and energy supplies.

Details of the Ban

The Houthis stated they would target vessels with any connection to Israel while transiting the Red Sea. The group did not specify enforcement mechanisms or a timeline, but a Houthi leader warned in March: "Our fingers are on the trigger at any moment should developments warrant it."

Context: Strait of Hormuz Closed

The announcement comes weeks after Iran closed the Strait of Hormuz on February 28, 2026, following Israeli and U.S. strikes. The closure disrupted Gulf energy exports and pushed up prices.

Saudi Response: Diverting Exports to the Red Sea

Saudi Arabia responded by diverting more than 70% of its normal crude exports to Yanbu, its Red Sea port. This has kept some oil moving, offering a lifeline to the fuel market.

How Is This Different from 2023 Attacks?

In 2023, the Houthis launched attacks on Red Sea shipping over Israel's war against Hamas in Gaza. But at that time, Gulf oil could still move through Hormuz. Ships could also avoid the Red Sea by sailing around Africa, though it took longer and cost more. Today, oil is being loaded on the Red Sea, making any disruption more severe.

Houthi Position on the Iran War

During the latest Iran war, the Houthis have stayed mostly quiet. They may have wanted to retain the threat of choking off the Red Sea to deter further escalations against Iran, or to avoid provoking Saudi Arabia, which backs the Yemeni government against them. But the new ban signals a change in their stance.

What This Means for Investors

The Houthi threat to Red Sea shipping adds another risk to global oil supplies, especially with the Strait of Hormuz closed. Any actual disruption could push oil prices higher and increase shipping costs. Energy sector investors should monitor developments closely, as the potential for broader military escalation remains.