Houthis Seize Key Waterway, Send Oil Prices Soaring

The Iran-backed Houthi rebels have become the biggest threat to global oil supply after their recent attacks in Yemen and Saudi Arabia. The group has taken advantage of infighting among US allies in the Gulf, particularly between Saudi Arabia and the United Arab Emirates.

In the past week, the Houthis effectively took over the Bab al-Mandeb Strait, a critical waterway that has become Saudi Arabia's main export route after Iran shut down the Strait of Hormuz. The group also masterminded the strike on the Saudi East-West oil pipeline, which is likely to be shut down for weeks.

The disruption threatens the flow of oil from Saudi Arabia, the world's second-largest supplier of crude. As a result, the price of a barrel of oil jumped to $108 on Tuesday.

Saudi forces bombed weapons arriving for UAE-backed groups in December, leading Abu Dhabi to withdraw from the conflict and fracturing the anti-Houthi alliance. The Houthi's lightning assault allowed them to take control of key ports along the coast of Yemen and Perim Island, which lies right in the middle of the Bab al-Mandeb Strait.