On Saturday, Yemen’s Houthi rebels launched missiles and drones toward Israel, seemingly aligning themselves with the Iranian conflict. This development raises concerns about their potential to disrupt shipping in the Red Sea as Iran restricts movement through the vital Strait of Hormuz, which could have serious implications for the global economy.
There is a risk that the Houthis might resume targeting ships in the Red Sea, impacting maritime safety and commerce. During the Gaza War, piracy in these waters seemed connected to Palestinian interests, but the Houthis had previously attacked vessels indiscriminately, regardless of their ties to Israel.
While the Houthis’ assaults on large cargo ships usually didn’t cause significant damage, they driven many shipping companies into dire financial straits. If navigation routes from the Red Sea to the Suez Canal were disrupted, the costs to the global economy could balloon due to increased freight and fuel expenses.
Efforts at an international level to shield vessels from Houthi strikes have not shown much success. The Biden administration is now looking to create a coalition with countries interested in stabilizing the Red Sea region, which includes planning airstrikes aimed at destroying Houthi missile launchers.
Despite a so-called ceasefire in Gaza back in November 2025, the Houthis resumed their activities over the weekend, attacking Israel for the first time in over a year. This has stirred fears that the Red Sea might once again become perilous for shipping lanes.
The Houthis claimed they targeted significant Israeli military sites, but the Israel Defense Forces asserted that they successfully intercepted all incoming threats from Yemen.
Michael Horowitz, an Israeli defense analyst, suggested that these attacks might be intended as a warning to Gulf nations, particularly Saudi Arabia, not to support the war with Iran or further let U.S. forces use their bases.
Horowitz mentioned that the Houthis are still in talks with Saudi Arabia, highlighting the complexities of their ongoing negotiations amidst the civil war that erupted in Yemen back in 2014.
While the Houthis have previously avoided escalating tensions with the Saudis, their recent actions could be an effort to remind everyone of their capability for disruption, perhaps signaling that they still hold significant influence in the region.
Other analysts indicated that Houthi activities could complicate Red Sea navigation, especially affecting Saudi oil shipments. If the situation deteriorates, it might lead to a reduction of up to 4 million barrels per day in oil moving through strategic routes, creating further instability in energy markets.
The timing of these Houthi actions is particularly concerning for Saudi Arabia, which has been trying to reroute oil through Yanbu in the Red Sea to sidestep the Strait of Hormuz. Recently, there has been a notable increase in oil shipments from Yanbu, though it won’t completely make up for the losses from Hormuz disruptions.
Analysts expressed serious concerns that losing the Bab el-Mandeb route could push oil prices to soar above $150 a barrel. As a result of the heightened risks posed by the Houthis, shipping insurance costs are likely to rise, impacting the overall expenses of oil and other goods transport.
