Houthis have seized large part of the area around the Bab el-Mandeb Strait, one of the world's most important maritime routes. The Iran-backed Shia militia has the capacity to close the Red Sea, which would represent a serious threat to international trade and goods transportation.
The situation could significantly worsen for oil prices. A pipeline transporting Saudi crude to Red Sea ports was hit on Friday by drones of Iranian allies, which could cause disruptions in oil supply in the region.
The Bab el-Mandeb Strait is a strategic passage linking the Red Sea to the Gulf of Aden, through which a large amount of commercial and goods traffic passes. The closure of this waterway would have serious consequences for the global economy and energy markets.
