Houthis Seize Strategic Island, Raising Oil Supply Fears and Pressure on Prices

The conflict in Yemen has escalated as the Iran-aligned Houthis seized control of the strategic island of Perim in the Bab el-Mandeb Strait. This move further tightens their grip on a vital global shipping route, putting pressure on oil prices and supplies.

Satellite imagery shows smoke from fires burning on Saudi Arabia's East-West pipeline, which was shut down by a drone attack originating from Iraq. The pipeline is the key alternative route for Saudi oil to reach global markets, bypassing the Strait of Hormuz.

The Houthis' capture of Perim Island and other Red Sea coastal towns has raised concerns that they could gain control of another major corridor for oil supplies. This would give their backer Iran a critical advantage in its war with the US, further reducing supplies through a second major corridor.

Saudi officials have asked Washington for military help to counter the Houthi attacks, which have resulted in at least 22 sailor deaths since the war began in February. Analyst Michelle Wiese Bockmann from Windward described the waters as 'not safe' due to the increasing violence.