US-led war risks new oil shock as Bab al-Bandab threat escalates

DUBAI (MNTV) — The US-Israel war on Iran is now threatening to trigger a wider global energy crisis, as Yemen’s Houthis warned they could shut down the Bab al-Mandab Strait, compounding disruptions already caused by tensions in the Strait of Hormuz.

The warning came as regional instability deepened following Washington’s continued naval blockade of Iranian oil exports, a move that has reignited tensions across critical maritime chokepoints.

The Houthis, aligned with Iran, signaled that they could close Bab al-Mandab entirely, a strategic corridor linking the Red Sea to the Gulf of Aden and the Indian Ocean.

Houthi Deputy Foreign Minister Hussein al-Ezzi issued a stark warning, stating that if the group decided to shut the strait, no external power would be able to reopen it.

He called on the United States to end policies that obstruct peace, placing responsibility for the escalating crisis squarely on Washington and its allies.

The threat follows a brief and short-lived easing of tensions, when Iran announced the reopening of the Strait of Hormuz, only to reverse the decision within hours after the United States insisted on maintaining its blockade of Iranian ports.

The renewed closure has again disrupted one of the world’s most critical energy routes, through which roughly one-fifth of global oil supplies typically pass.

The Bab al-Mandab Strait itself is a narrow and highly vulnerable chokepoint, measuring just 26 to 30 kilometers at its narrowest, even tighter than Hormuz. Shipping traffic is restricted to two narrow channels, effectively creating a bottleneck for global trade.

The strait is divided by Yemen’s Perim Island into two routes: a wider western channel used for major international shipping and a much narrower eastern passage primarily for smaller vessels.

Any disruption in Bab al-Mandab would have immediate global consequences. It serves as a key alternative route for oil shipments, particularly for Saudi exports redirected to Red Sea ports after Hormuz disruptions.

Closure or even heightened risk could force vessels to reroute around the Cape of Good Hope, significantly increasing shipping times, freight costs, and insurance premiums.

The rising tension has already impacted markets. Oil prices, which had dropped sharply by around 10 percent following initial signs of de-escalation, rebounded as uncertainty returned.

Traders are now reassessing earlier optimism, particularly after US forces intercepted and seized an Iranian vessel, escalating fears of prolonged disruption.

Maritime incidents have further heightened alarm. India expressed concern over a reported shooting involving two of its flagged tankers in the Strait of Hormuz.

The vessels, Jag Arnav and Sanmar Herald, were forced to turn back after coming under fire from Iranian forces amid confusion over navigation permissions. No damage or casualties were reported, but distress communications revealed the chaos unfolding at sea.

Analysts warn that the situation now presents a dual chokepoint crisis, with both Hormuz and Bab al-Mandab under threat. Even limited disruptions in these narrow waterways can significantly impact global energy markets, as the mere risk of attacks forces companies to alter routes and increases operational costs.

The Houthis’ warning also builds on a sustained campaign targeting maritime traffic. Since late 2023, the group has carried out more than 100 attacks on commercial and military vessels in the Red Sea region, including the seizure of the Galaxy Leader cargo ship and the sinking of the Rubymar in 2024. These actions have already transformed Bab al-Mandab into a high-risk zone, forcing many shipping companies to reroute.

Although attacks slowed in 2025, the threat never fully disappeared. By March 2026, tensions linked to the broader Iran conflict reignited risks in the Red Sea, bringing the region back to the center of global energy concerns.

The latest developments underscore how US military escalation and blockade tactics have expanded the conflict’s impact far beyond Iran, placing global trade routes under unprecedented strain. With two of the world’s most critical oil arteries now at risk, markets are bracing for a prolonged period of volatility.