Houthi Advances in Yemen Push Oil Prices Higher Amid Region Tensions

The conflict in Yemen has escalated further as Iran-backed Houthi fighters have made significant gains against Saudi-backed forces. The Houthis took control of the port city of Mokha and the island of Mayun, which is a vital shipping route. This move comes after weeks of clashes between the two sides.

The fighting has led to higher oil prices as Brent crude shot up to over $108 a barrel briefly on Thursday before settling around $105 on Friday. The increased tensions in the region have raised concerns about further energy price hikes in the coming weeks.

Saudi Arabia's exports have been severely impacted by the conflict, with data showing that the kingdom exported just 3.2 million barrels per day last month, its lowest level in over a decade. The country has had to reroute its oil through an east-west pipeline leading to the Red Sea near Bab el-Mandeb as a fallback measure.

The Houthi leader Mohammed Bukthi said that their attacks on Saudi-aligned forces and ships are in response to the kingdom's years-long blockade of Houthi-held areas, which he claimed has led to deaths from hunger. He also stated that Yemen will not be silenced while Saudi Arabia and its allies are free to navigate these waters.