Iran-backed Houthi fighters reportedly seized Yemen's Perim Island on Friday, a day after taking the Red Sea port of Mokha. The advance tightens the group's grip on the Bab el-Mandeb Strait, a critical oil and shipping chokepoint, and puts Iran and its proxies within reach of controlling waterways on both sides of the Arabian Peninsula.
Houthis push toward the Bab el-Mandeb Strait
The Iran-backed Houthis reportedly advanced to Yemen's strategic Perim Island on Friday, a move that would hand the militant group a major boost in its push to control one of the world's most important shipping chokepoints. The report, citing multiple Yemeni government sources, could not be independently confirmed by CNBC.
Its capture follows the Houthis' seizure of Yemen's Red Sea port city of Mokha just one day earlier. Perim Island is a small, rocky landmass that divides the Bab el-Mandeb Strait, the waterway connecting the Red Sea to the Gulf of Aden and onward to global markets. Mokha itself sits about 75 kilometers (46 miles) north of the strait.
This rapid ground offensive marks a severe setback for Saudi Arabia and the Yemeni forces it backs. It also puts Iran and its proxies on course to exert influence over two critical oil chokepoints on either side of the Arabian Peninsula: the Bab el-Mandeb Strait and the Strait of Hormuz. According to Hamish Kinnear, principal Middle East and North Africa analyst at Verisk Maplecroft, the capture of Mokha was a "major blow" to Saudi Arabia.
Kinnear said the Houthis were already threatening Saudi shipping from earlier positions, but the advance opens the door to further moves toward the Bab el-Mandeb coastline. He added that both Tehran and Washington believe time is on their side, making a new truce unlikely for now. The strait's strategic weight has grown since the U.S. and Israel's war against Iran began in late February, as it emerged as an alternative route for crude moving toward Asia.
Oil traders weigh the risk to supply
Oil prices traded sharply lower on Friday, yet both major benchmarks could still close the week above $100 a barrel for the first time since mid-May. Brent crude futures with November expiry fell 3.3% to $104.21 per barrel, while WTI futures with October expiry dropped 3.4% to $99.08.
Strategists at ING said the oil market's resilience is being tested by a clearer recognition of the mounting threat to regional supply, with participants repricing both the duration and severity of the conflict. Kinnear noted that oil and gas prices, particularly refined products such as diesel, will likely keep ticking upward while the standoff continues, even as U.S. convoys and Strait of Hormuz export alternatives cushion the impact.
Source: CNBC
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