Yemen's Iran-backed Houthi movement declared an immediate maritime embargo on Saudi Arabia on 20 July 2026, threatening the flow of millions of barrels of crude the kingdom exports via the Red Sea. The group's armed forces said they were imposing a blockade against 'the criminal Saudi enemy' on the basis of 'an eye for an eye', citing what they described as a decade-long Saudi blockade on Yemeni ports and airports, as well as a recent attack on Sanaa International Airport. Nasruddin Amer, deputy head of the Houthi media office, said on X that the Bab al-Mandeb strait would be closed in response to what he characterised as Saudi Arabia's blockade on Yemenis for over ten years [Source: PBS/AP]. Saudi Arabia had not publicly responded to the announcement at the time of reporting.

The Bab al-Mandeb strait, a 32-kilometre passage at the southern tip of the Arabian Peninsula, is the gateway to the Red Sea through which around 12% of the world's trade and a quarter of global container trade typically transits to and from the Suez Canal. A full closure of the strait would reduce global oil supply by 7%, as it would leave most Saudi oil exports unable to leave the region [Source: Reuters]. The declaration came against a backdrop of significant disruption already affecting Saudi export routes: supertanker crossings through the Strait of Hormuz fell to an average of two per day last week, down from eight per day in late June and early July, according to maritime sources. Saudi Arabia had previously exported around six million barrels per day through Hormuz before that passage was effectively shut in late February 2026, with Saudi production having fallen by around two million barrels per day to approximately eight million barrels per day.

In response to the closure of Hormuz, Saudi Arabia had substantially increased crude loadings at Yanbu on the Red Sea. Loadings at the terminal reached approximately 4.7 million barrels per day around 13 July, close to its operational limits, with exports averaging more than four million barrels per day since June. Saudi Aramco (2222.SR) has stated that its East-West pipeline can transport up to seven million barrels per day to the Red Sea, of which around five million barrels per day are available for export [Source: Baird Maritime]. A drone strike in April 2026 damaged one of eleven pumping stations on the 1,200-kilometre pipeline, reducing throughput by 700,000 barrels per day according to the Saudi Press Agency. The Houthi declaration therefore targets what has become Saudi Arabia's primary remaining export corridor. Brent (BZ=F) and WTI (CL=F) futures carry direct exposure to any sustained disruption on this route.

The Houthi announcement also opened what Reuters described as a new front against the United States in its conflict with Iran, widening the threat to global energy supplies and trade beyond the Gulf. Reuters reported that Iran had pressed the Houthis to close Bab al-Mandeb if the United States continued to attack Iranian power infrastructure; the declaration followed a ninth consecutive night of U.S. strikes on Iran, with Tehran reporting hits in Tabriz, Chabahar, Konarak, Bandar Mahshahr and Bandar Imam Khomeini. It was not immediately clear how the Houthis would implement the blockade or whether it would signal a return to direct attacks on international shipping. The Houthis disrupted global commerce during a previous campaign beginning in late 2023, attacking more than 100 vessels around the Bab al-Mandeb strait following the onset of Israeli operations in Gaza, before attacks ended after a Gaza ceasefire announced in October 2025. The Houthis previously fired ballistic missiles and drones at Saudi Arabia's Abha International Airport following an attack on Sanaa airport, in what AP described as the most significant confrontation in years [Source: PBS/AP]. Saudi Arabia has led a military coalition against the Houthis since 2015 and imposed an air and sea blockade on Yemen following the group's seizure of Sanaa in 2014; an informal truce between the two sides had taken effect in April 2022.

Sources: Bloomberg, BBC News, PBS/AP, Reuters, Nikkei Asia, Al Jazeera, Baird Maritime, Modern Diplomacy, OilPrice.com, The National, gCaptain