The group announced the decision through state-run media, with a Houthi spokesperson stating that Saudi Arabia had imposed an "aggressive siege" on them. The group also claimed Saudi forces bombed Sanaa International Airport.
After the interim agreement to reopen the Strait of Hormuz collapsed on June 17, hostilities between the U.S. and Iran have escalated. American airstrikes on Iran have now occurred for nine consecutive days. Recent combat has resulted in the deaths of at least three American military personnel.
In retaliation, Tehran has fired missiles at U.S. allies in the Persian Gulf. Tehran has conducted multiple assaults on oil tankers this month, resulting in the deaths of at least two crew members and injuries to over a dozen others.
However, prices retreated later after Iranian officials signaled they remained willing to negotiate with the United States.
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Crude oil prices saw little change in response to the Houthis' threat. The prior surge in Brent was driven by the deaths of three U.S. service members.
The Houthi embargo could amplify the oil supply problems already caused by Iran's strikes against tankers navigating the Strait of Hormuz. On multiple occasions, the Houthis have warned they would shut down the Bab el-Mandeb Strait amid the ongoing U.S.-Iran conflict. This narrow waterway serves as a critical bottleneck for cargo vessels linking the Red Sea with the Gulf of Aden and international trade routes.
Saudi Arabia has been diverting huge amounts of oil - millions of barrels daily - through a pipeline that ends at a Red Sea export terminal. These shipments have provided a vital safety outlet for global oil supplies amid the hostilities between Washington and Tehran. Shutting down the Bab el-Mandeb strait would trap that oil, preventing its export.
Officials from the Trump administration have stated that the Strait of Hormuz is still operational, with millions of barrels of crude exported each day safeguarded by American naval forces. Vessel movements via Hormuz have declined as the conflict intensifies.
The Houthi embargo represents the latest escalation in a wider regional confrontation that has destabilized global energy markets. The waterway, located between Yemen and Djibouti, is a vital artery for oil tankers and cargo ships transiting from the Red Sea to the Indian Ocean. The Houthis have previously threatened to block it, and their latest move could severely impact supply chains already strained by the ongoing U.S.-Iran hostilities and reduced traffic through the Strait of Hormuz.
Saudi Arabia's pipeline to the Red Sea has partially offset losses from Hormuz, but any closure of Bab el-Mandeb would trap those alternative flows, potentially sending oil prices even higher. Analysts warn that sustained disruptions could push Brent above $100 per barrel if diplomatic efforts fail to restore calm.
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