Yemen's Iran-backed Houthi rebels claimed responsibility for attacking two Saudi oil tankers, the Encelia and the Layla, in the Red Sea using missiles and drones. This incident, reportedly the first vessel attack by Houthis since they announced a blockade of Saudi-linked shipping through the Bab el-Mandeb Strait, led to explosions and fires on the tankers, though no casualties were reported. The attack occurred near Al Shuqaiq, Saudi Arabia, and immediately followed the Houthis' threat to blockade Saudi ports in response to recent Saudi strikes on Sanaa.
The attacks significantly impacted global oil markets, with Brent crude oil prices spiking over 6% to nearly $100 a barrel, marking the highest level since May. This surge reflects growing concerns over the security of vital shipping lanes, particularly the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and handles approximately 12% of global trade. The Houthis' actions create a "double whammy" for oil shipments, exacerbating disruptions caused by Iran's closure of the Strait of Hormuz.
In response to the Houthi attacks, Saudi Arabia announced it had conducted retaliatory strikes against Houthi military targets. The Red Sea has become an increasingly crucial route for Saudi oil exports, with millions of barrels a day diverted to Yanbu port via an overland pipeline to bypass the volatile Strait of Hormuz. The ongoing hostilities between the US and Iran, including US airstrikes on Iranian military sites and a naval blockade of Iran's ports, further complicate the regional security landscape. US President Donald Trump has warned of "major military punishment" if Houthi attacks on ships continue.
