Houthis' Red Sea Offensive Sends Oil Prices Soaring

The Houthi offensive in Yemen's Red Sea coast has raised oil prices above $100 per barrel, adding another front to the US-Israel war against Iran. The Houthis have taken control of key parts of the Red Sea coast, threatening shipping and making shippers jittery.

The Red Sea had emerged as an alternative route for energy trade after the Strait of Hormuz was locked up by Iran and the US. However, with the Houthi offensive, this route is now also under threat. The East-West pipeline in Saudi Arabia was hit by a drone attack last week, which was blamed on Iran-backed Shia militias in Iraq.

The timing of the Houthi offensive is not a coincidence. It follows the state funeral of Iran's former supreme leader Ali Khamenei and the American blockade of Iranian ports and shipping in the Persian Gulf. The Houthis want to shut down alternative routes for energy transit, including through the Red Sea.

The Saudis are in a jam because the US has refused to directly intervene against the Houthis this time. Washington is providing diplomatic and advisory support to Riyadh but not much else. Saudi Crown Prince Mohammed bin Salman has sought assistance from Egypt and UK but no one is rushing military aid to Riyadh.