Houthis Grab Red Sea Coastline as Saudi Pipeline Shuts, Tightening Global Oil Squeeze

Saudi Arabia shut down its vital East-West oil pipeline. Iran-backed Houthi fighters seized the strategic island of Perim. Oil prices climbed above $100 a barrel.

These events didn’t unfold in isolation. They collided on Sept. 12, 2026, exposing the fragile state of Middle East energy flows. The kingdom’s main alternative route for crude now sits idle. Houthi forces stand within striking distance of one of the world’s busiest shipping chokepoints. Traders, shippers and governments scramble for answers.

The pipeline, stretching 1,200 kilometers from eastern oil fields to the Red Sea port of Yanbu, had carried 4 million to 5 million barrels per day. That volume represented 4% to 5% of global supply. Saudi Energy Ministry officials called the closure a precautionary measure after drone strikes hit facilities in the Riyadh and Medina regions the previous day. Black smoke rose from the area south of Medina, satellite images showed. Injuries occurred. Damage assessments continue.

Houthi Advance Reshapes Red Sea Control

Hours earlier, Houthi units swept down Yemen’s western coast. They captured the historic port city of Mokha. Then they pushed south to Dhubab. By Friday they held the entire Red Sea coastline. Four Yemeni government sources told Reuters the rebels seized Perim Island — also known as Mayun — at the mouth of the Bab el-Mandeb Strait. The volcanic outcrop splits the narrow waterway into two channels. Control here gives the Houthis new leverage over vessels heading north toward Suez or south to the Gulf of Aden.

But the offensive didn’t stop at the mainland. The group took the Hanish Islands too. In under five days they gained more than 2,600 square miles of territory. Government forces withdrew. A senior military official from Yemen’s internationally recognized government confirmed the losses. So did a Houthi official. Both spoke on condition of anonymity.

And the advances carried Iranian fingerprints. Reuters reported that Iran’s Revolutionary Guards provided direct guidance and promised more weapons, funding and officers. Tehran told the Houthis last week to escalate attacks on Saudi Arabia. The goal? Open a fresh front in the broader conflict with the U.S. and its allies.

April Longley Alley, senior fellow at The Washington Institute, described the shift in an NPR interview. “The Houthis have broken front lines in Yemen,” she said. “They captured the strategic port city of Mokha… and by Friday, they had taken the entire Red Sea coastline, down to the strategic Bab el-Mandeb choke point.” Her words captured the speed. Mountain fighters who once endured years of Saudi airstrikes now dictate terms along the coast.

Saudi Arabia has relied heavily on this Red Sea corridor since Iranian actions constrained traffic through the Strait of Hormuz. Exports from Yanbu more than doubled after the U.S. and Israel struck Iran in late February. The International Energy Agency noted the surge. Yet that dependence now looks perilous. Houthi attacks already slashed Saudi crude shipments to Asia from 3.4 million barrels a day in June to 128,000 in August, according to Kpler data cited by multiple outlets. Volumes recovered somewhat this month. The pipeline closure adds fresh pressure.

Oil markets reacted fast. Brent crude traded above $100. Analysts warned of further spikes if disruptions widen. Rerouting through the Suez Canal or around Africa’s Cape of Good Hope takes weeks. Extra time. Higher costs. Insurance rates already elevated from previous Houthi campaigns would climb higher. Diesel prices in some markets approached $6 a gallon in recent trading.

Yemeni government forces say they will try to retake the lost ground. Saudi warplanes conducted over 100 strikes across seven provinces in 48 hours, according to Houthi spokesman Yahya Sarea. The rebels vowed to respond. “Escalation for escalation,” their statement read. They insist maritime navigation remains safe for all vessels except Saudi ones.

But confidence is thin. A Yemeni source told The Telegraph the situation changed dramatically. “It’s going to affect the global market and international maritime routes more than the domestic dynamics of the war in Yemen.” Ahmed Nagi, Yemen analyst at Crisis Group, told the Financial Times the Houthis now control Bab el-Mandeb fully. Mohammed al-Basha, founder of Basha Report, said the anti-Houthi coalition appears to be crumbling.

The East-West pipeline was built in the 1980s precisely to bypass Hormuz risks. It handled up to 7 million barrels per day at full capacity. Recent operations ran near that level. Its sudden offline status forces Saudi Arabia to consider limited northern routes near the Suez Canal or accept lower exports. Saudi crude supply already hit its lowest level in more than three decades, the International Energy Agency reported Friday.

Iraq dismissed a military commander after confirming the drones originated from its territory, where Iranian-backed militias operate. Riyadh blamed the strikes on several drones from Iraq and chose not to retaliate immediately. Baghdad received an opportunity to investigate, Saudi officials said. Regional sources told The Associated Press the Houthis assisted in planning those attacks.

Diplomatic efforts have stalled. U.N. Special Envoy Hans Grundberg warned of a new and more dangerous phase. President Donald Trump reportedly received a Saudi request for military help against the Houthi advance. The White House has not confirmed details. Trump previously stated he expected the Iran war to wind down after U.S. midterm elections.

Yet the pincer tightens. Hormuz remains heavily restricted. The Red Sea grows riskier by the day. Combined, these routes once moved a fifth of global oil. Now both face simultaneous threats. Ship tracking firms report only two Saudi cargoes passed through Bab el-Mandeb in the past week.

Energy analysts point to longer-term consequences. Repairing the pipeline could take time. Even temporary loss of 5 million barrels daily matters when inventories sit low and demand holds steady. Asian buyers, Saudi Arabia’s primary customers, may turn elsewhere. Prices for Russian or U.S. crude could rise in sympathy.

The Houthis have targeted Red Sea shipping before. Their 2023-2024 campaign disrupted vessels in solidarity with Palestinians in Gaza. This time the stakes appear higher. Control of Perim Island and proximity to Dhubab — just 10 kilometers from the strait in places — lets them threaten shipping with greater precision. Missiles. Drones. Mines. The group has used all three in past operations.

Saudi Arabia faces a security dilemma. Its air campaign against the Houthis has not prevented territorial gains. Ground allies in Yemen retreated quickly. The kingdom’s dependence on Red Sea exports, born of necessity after Hormuz disruptions, now exposes a second vulnerability. Officials in Riyadh assess options. Some reports suggest requests for U.S. support beyond current levels.

Global shipping companies watch closely. Many already avoid the Red Sea. Those still transiting pay higher insurance and sail in convoys. Further restrictions could reroute trade around Africa, adding 10 to 14 days to Asia-Europe journeys. Consumer prices for goods would feel the effect. Energy costs would compound it.

So the risks mount. A single miscalculation — another strike, a blocked channel, delayed repairs — could send oil toward $120 or higher. Markets hate uncertainty. This weekend delivered plenty. Governments from Washington to Beijing seek ways to calm the waters. Whether diplomacy can match the pace of Houthi advances remains uncertain.

One fact stands clear. The events of Sept. 11 and 12 altered the map of energy security. Houthis hold the coast. The pipeline sits silent. And the world pays attention.