Almost three years after gaining global attention for their attacks on commercial vessels near Yemen, the Houthis have significantly expanded their influence through violence in the Middle East region. The group, known for causing troubles for Israel, Saudi Arabia, the U.S., and international shipping lanes, is now a major player whose actions could impact global oil prices.
The Houthis are a faction involved in the Yemeni civil war, which resulted in over 100,000 deaths before a fragile ceasefire was achieved in 2022. Originating in the 1990s, the Houthi movement, led by the Houthi family in northern Yemen, aimed to revive the Zaydi sect of Shia Islam. The conflict escalated in 2014 when the Houthis seized control of Sanaa, the capital of Yemen, leading to Saudi Arabia, supported by Gulf states and the U.S., launching airstrikes against the rebels with Iranian backing.
The situation worsened for the war-torn country, with a death toll exceeding 150,000 individuals and countless others suffering from malnutrition and other repercussions, making it one of the world’s direst humanitarian crises according to the United Nations.
Following a UN-brokered ceasefire in April 2022, the Houthis redirected their aggression towards Israel and Red Sea shipping routes post the Gaza conflict in October 2023, resulting in attacks on vessels and casualties among sailors. However, the frequency of attacks decreased during Gaza ceasefires and temporarily halted after U.S. airstrikes on the rebels.
The fragile truce of 2022 is now collapsing, raising concerns of renewed civil war in Yemen and potential impacts on global commodity prices. Recent escalations include the Houthis resuming attacks on Saudi Arabia in response to a Saudi airstrike on Sanaa’s airport, leading to tensions and violence.
The Houthis’ recent offensive has extended to the strategic island of Perim in the Bab al-Mandab Strait, a crucial shipping passage connecting Yemen and Africa. Control over this strait could have severe economic implications, potentially enabling Iran to leverage disruptions in energy and shipping flows to influence regional dynamics.
The Houthis aspire to establish a strict Shia theocracy in Yemen, positioning themselves as partners to Iran while aiming to diminish U.S. influence in the region. Their actions have caused shipping costs to surge, impacting global oil prices and creating uncertainties in trade routes like the Suez Canal, crucial for seaborne commodity shipments.
As tensions escalate, Saudi Arabia seeks U.S. support against the Houthis, while Iran’s intentions in the Bab al-Mandab Strait remain a point of concern. The situation remains fluid, with potential implications on global trade and security as regional powers maneuver to protect their interests.