Yemen's Houthi movement has escalated the Middle East conflict by firing a missile towards Israel, signaling its direct entry into the war alongside Iran and threatening to disrupt one of the world's most critical trade arteries.
This development brings the focus back to the Bab al-Mandeb Strait, a narrow sea lane that acts as a gateway to the Suez Canal. This is no minor shipping lane; before the previous Red Sea crisis, this chokepoint handled nearly 9 million barrels of oil per day and over 20% of global container trade. When Houthi attacks intensified in 2024, oil flows through the strait dropped by more than half as ships took the longer, costlier route around Africa, and shipping prices on Asia-Europe routes temporarily doubled. The threat of a full closure could bring back these economic shocks almost overnight, you see.
So, why is this happening now? This wasn't a random act of aggression but a direct consequence of a rapidly escalating chain of events. First, the conflict intensified significantly when the U.S. and Israel launched coordinated strikes inside Iran in late February 2026. Second, Iran retaliated by striking a Saudi airbase hosting U.S. troops, causing American casualties and increasing pressure on the U.S. to respond. Third, just a day before the missile launch, a Houthi spokesperson publicly laid out the conditions for their "direct military intervention" to support Iran. The missile fired at Israel was the fulfillment of that promise, an activation of a key Iranian proxy at a moment of high tension.
International efforts to contain the Houthis have had limited success. The U.S. redesignated the group as a Foreign Terrorist Organization, and the UN Security Council demanded a halt to their attacks back in 2024. However, these political and financial pressures haven't removed their ability to threaten maritime trade. This suggests the Houthis are using the threat of closing the Red Sea as powerful leverage, a strategic card to play in the broader geopolitical confrontation between Iran and its adversaries.
What began as a regional naval security issue is once again threatening to become a global economic problem. With the Houthis now an active participant in the wider war, the stability of global supply chains and energy prices is facing a significant new test.
- Bab al-Mandeb Strait: A narrow sea passage between Yemen on the Arabian Peninsula, and Djibouti and Eritrea in the Horn of Africa. It connects the Red Sea to the Gulf of Aden.
- Proxy: A group or state that acts on behalf of another. The Houthis are widely considered a proxy of Iran, carrying out actions that align with Iranian interests.
- Chokepoint: A narrow channel along a global shipping route, where congestion or blockage can have far-reaching consequences.