Houthis Seize Key Port in Yemen, Raising Oil Chokepoint Threat

The Iran-backed Houthi militant group has taken control of Yemen's strategic port city of Mokha on the Red Sea coast, bringing Tehran closer to securing another point of leverage in its conflict with the US.

The capture of Mokha is a significant setback for Saudi Arabia and the Yemeni forces it backs. The city's seizure could increase Iranian pressure around two critical oil chokepoints: the Bab el-Mandeb Strait and the Strait of Hormuz.

Mokha, situated about 75 kilometers north of the Bab el-Mandeb Strait, is a key location for global trade. The waterway connects the Red Sea to the Gulf of Aden and global markets. Its strategic importance has grown since the US and Israel's war against Iran began in late February.

Saudi energy infrastructure and crude oil exports from the Red Sea are increasingly at risk, with the Houthis targeting Saudi Arabia. The capture of Mokha raises the possibility of the group exerting a tighter grip on the Bab el-Mandeb Strait, according to Hamish Kinnear, principal Middle East and North Africa analyst at Verisk Maplecroft.

Kinnear said that both Tehran and Washington believe time is on their side, making a new truce unlikely for now. Oil prices have been rising due to the conflict's impact on regional supply. Brent crude futures traded 2.1% lower at $105.37 per barrel, while U.S. West Texas Intermediate futures were last seen 1.7% lower at $100.76.

The resilience of the oil market is being tested by a clearer recognition of the mounting threat to regional supply. Strategists at ING said that energy market participants are repricing both the duration and severity of the conflict. Flows through the Strait of Hormuz remain below pre-war levels, underlining how fragile the situation has become.