Houthis Capture Key Islands, Threaten Red Sea Oil Routes and Qatari LNG Exports

The Houthis have advanced on Bab al-Mandeb Strait, capturing key islands and threatening oil routes. The Red Sea port of Mocha was taken by Houthi forces on Thursday, gaining them control over the approach to Bab al-Mandeb. This strategic strait connects the Red Sea to the Gulf of Aden and Indian Ocean.

Bab al-Mandeb carries 6.2 million barrels of oil and refined products daily, with over 80% of liquefied natural gas (LNG) shipped north to Europe passing through it. The Houthi's control of Perim Island allows them to monitor and potentially mine the waterway.

The capture of these islands has caused a surge in Brent crude prices, reaching $108 on Thursday. WTI also rose above $103. Saudi Arabia has rerouted more than 70% of its crude exports through the Red Sea port of Yanbu since Iran closed Hormuz. However, the Houthis are now threatening this alternate route.

The conflict in Yemen and the closure of Hormuz have crippled Qatar's ability to export LNG, with the country negotiating long-term purchases from U.S. suppliers. QatarEnergy is considering supplies from both operating and under-construction U.S. export projects.