Iran’s ‘major’ oil blockade: Red Sea disruption, oil price shock
Dagen McDowell pointed out that Iran’s backing of terrorist groups like Yemen’s Houthis has led to a maritime blockade affecting Saudi Arabia. This situation has escalated tensions in the Middle East, putting the crucial Red Sea oil trade route at risk. Global investors are understandably on edge, given the potential economic fallout.
Secretary of State Marco Rubio accused Iran on Wednesday of facilitating transportation of Islamic Revolutionary Guard Corps members to Yemen, claiming this exacerbated the conflict between Saudi Arabia and Iranian-supported Houthi rebels. “They decided to send direct flights from Tehran to Yemen and bring members of the Revolutionary Guards and other people to Yemen,” Rubio said. “And the Saudis complied.” However, he did not specify which flights were involved or how many personnel were reportedly transported, nor did he provide supporting evidence.
Rubio asserts US is open to discussions with Iran but warns there will be repercussions
Rubio made these statements while participating in the annual meeting of ASEAN foreign ministers in Manila. The ongoing tensions between the U.S. and Iran, along with the risks to international shipping, were major themes at the meeting.
The Houthis have announced a targeted blockade against shipping linked to Saudi Arabia in the Bab el-Mandeb Strait, suggesting an escalation of the conflict and potential disruption to a crucial global trade route. They argue that their focus is on ships associated with Saudi Arabia and those going to its Red Sea ports, in response to Saudi restrictions on Yemen and a recent assault on the airport in Houthi-controlled Sanaa.
Iran-aligned Houthi group indicates further assaults following Yemeni airport attacks
The Houthis have blamed Saudi Arabia for the airport attack, alleging it aimed to prevent flights bringing Houthi leaders back from Iran. Rubio contested this narrative, accusing the Iranian government of utilizing direct flights for transporting Revolutionary Guards to Yemen. Subsequently, the Houthis targeted Saudi Arabia’s Abha International Airport with missiles and drones, marking one of the most serious confrontations between the two nations in years.
Rubio has indicated U.S. discussions with Saudi officials regarding the Houthi threat have ramped up over the past week. “Anything that restricts shipping through the Red Sea is going to be a problem for the same reason that the Strait of Hormuz is a problem,” he said, adding that they were monitoring the situation closely.
Saudi Arabia has committed to keeping the Bab el-Mandeb strait open and responding decisively to Houthi threats toward commercial vessels in the area. This narrow strait is not just critical for Red Sea navigation but also connects to the Gulf of Aden, facilitating an essential shipping corridor between Europe and Asia via the Suez Canal. Generally, around 12% of global trade and about a quarter of container traffic flows through this passage.
With the ongoing U.S.-Iran tensions diminishing traffic through the Strait of Hormuz, Saudi Arabia has increasingly turned to the Red Sea export route for moving oil to the international market.
The Houthi news agency SABA claimed that six ships altered their course after receiving warnings, but this assertion could not be verified independently. Although the Houthis stress that their blockade targets only Saudi-linked vessels, past assaults associated with the Gaza conflict have seen rebels targeting over 100 ships, many of which had no links to Israel.
President Trump stated on Tuesday that the latest threats from the Houthis had not yet materialized. “Right now, nothing like that is happening,” he remarked, adding that if such an event occurred, the U.S. would have to respond adequately.
Rubio’s allegations arose as U.S. military operations conducted 11 successive nights of strikes against targets in Iran, focusing on aircraft hangars and drone storage facilities, according to U.S. Central Command.
He also expressed to Southeast Asian leaders that permitting Iran to dominate the Strait of Hormuz and impose tolls, while attacking non-compliant vessels, could set a troubling global precedent. “If we set a precedent in the Middle East that states can control international waterways, charge tolls, and decide to blow up ships if they don’t pay, we have set a very dangerous precedent that will be repeated in this region and other parts of the world,” Rubio warned.
Iran’s backing of the Houthis illustrates a broader pattern of support for militant groups across the region
Furthermore, Rubio noted that Iran’s financial backing of the Houthis reflects a larger issue of funding extremist factions throughout the Middle East. “The Houthis, Hezbollah, the Iraqi militias, Hamas, this is what Iran is spending money on,” he said. “The problem isn’t with the people. The problem is with the actors who support terrorist organizations and destabilize the region.”
