Houthi Threat Halts Oil Price Rally, Tempers Strait Deal Optimism

Oil prices rebounded slightly after plummeting by 12% in the previous two sessions. The price of Brent crude was trading around $80 a barrel on August 5, 2026. This comes as Yemen's Iran-backed Houthis widened their threat to Saudi oil exports from the Red Sea.

The group's military spokesperson announced that they would escalate attacks on Saudi vessels in the northern Red Sea, which has become a vital route for the kingdom's exports since the Iran war disrupted shipping from the Persian Gulf.

This latest development tempered optimism over a potential deal to reopen the Strait of Hormuz. The Houthi move is seen as a workaround for Saudi Arabia to avoid using the Bab al-Mandab Strait off Yemen's coast, which has been a contentious issue in the region.