Houthis, US Forge Secret Alliance as China Eyes Strategic Oil Chokepoints

The Houthi rebels in Yemen have been secretly working with the U.S. to strengthen their position against Saudi Arabia, according to an exclusive source who works closely with Iran's Petroleum Ministry.

This alliance has given the Houthis significant leverage over two critical global oil transit routes: the Strait of Hormuz and the Bab el-Mandeb Strait.

The Strait of Hormuz is responsible for up to 30% of the world's crude oil flows, while the Bab el-Mandeb Strait handles around 12%. The Houthis' control over these straits has resulted in a nearly 90% drop in shipping through the Bab el-Mandeb Strait, according to IMF PortWatch data.

The source stated that Iran effectively holds hostage up to 42% of the world's crude oil flows and up to 30% of its LNG flows, putting significant pressure on global energy markets. The Houthis' recent seizures of key islands in the Red Sea have further solidified their control over the region.

The U.S.' refusal to help Saudi Arabia militarily against the Houthi advance has left Riyadh 'knowing it's on its own now,' according to a senior source who works closely with the European Union's security complex. The Houthis' widening military campaign against Saudi Arabia is likely to continue, given the formation of a 14-country task force called the Multinational Maritime Defense Coalition (MMDC).

The MMDC includes several countries that are either backed by or have significant economic ties with China, which has invested heavily in Djibouti and has a major military base there. This has raised concerns about Beijing's influence over the region and its potential to quietly pressure Tehran to rein in the Houthis.