Houthis Seize Key Island, Threatening Gulf Oil Flows
The Houthis have reached the strategic island of Perim in the Bab el-Mandeb Strait, putting pressure on Gulf oil flows and global shipping routes. The vital East-West pipeline in Saudi Arabia was temporarily shut down by a drone attack from Iraq, which has further strained diplomatic efforts to ease war in the region.
The Houthi gains could give Iran a critical advantage in its war with the US, reducing supplies through a second major corridor and raising oil prices. Saudi Arabia has asked Washington for military help, but US President Donald Trump's administration has said it will only provide intelligence sharing and targeting assistance.
The attack on the East-West pipeline resulted in some injuries and damage, although the impact on exports is being assessed. Oil prices dipped on Friday but were on track to end the week above $US100 a barrel for the first time since mid-May.