Houthi Advance in Yemen Threatens Global Shipping and Oil
Nearly 50,000 Yemeni civilians have been displaced by a rapid Houthi advance along the Red Sea coast, raising concerns for global trade and oil prices.

Nearly 50,000 Yemeni civilians have fled a sudden advance by Iran-backed Houthi forces in western Yemen, with the United Nations International Organization for Migration (IOM) reporting 46,000 people displaced across the governorates of Taiz and Hodeidah. This rapid territorial change along the Red Sea coast, including the seizure of strategic Mayun Island, threatens to escalate Yemen’s conflict and impact global trade.

Houthi Offensive Displaces Thousands and Seizes Key Territory

The Houthi advance, described by The Guardian as a “lightning advance,” has seen the militants seize a string of towns along the Red Sea coast from forces aligned with the US- and Saudi-backed Yemeni government. Hundreds of people are reported to have been killed. For many families, this marks their second or even third displacement, arriving with few belongings due to shelling and frontline advances, according to Joe Lowry, IOM’s Middle East and North Africa spokesperson, as reported by The Guardian. Urgent needs for those displaced include emergency shelters, cash assistance, food, drinking water, household items, healthcare, and protection services.

The strategic port city of Mocha, known as the birthplace of the global coffee trade, has fallen to Houthi forces. Mohamed, 46, who fled Mocha, described an “apocalyptic” atmosphere to Agence France-Presse. Other reports cited by The Guardian indicated some families fell victim to “looting by gangs as they tried to flee.”

Further to this, Houthi forces have taken control of Mayun Island, also known as Perim, which is a 13 square kilometre volcanic island in the heart of the Bab al-Mandeb Strait. This seizure, confirmed by both Yemeni government and Houthi officials according to Al Jazeera, gives the group a strategic physical outpost in the crucial strait, which it now effectively controls along with the Red Sea coastline of Yemen.

Global Economic Repercussions and Regional Tensions

The Bab al-Mandeb Strait is a vital 20-mile stretch of water and a critical trade and energy route connecting Asia with Europe. Its importance has been amplified since the closure of the Strait of Hormuz in the Gulf due to the US-Israel war on Iran, as Al Jazeera reported. Security analyst Wolfgang Pusztai stated that the Houthis now possess the “real capability to shut down any maritime traffic through Bab al-Mandeb if they want to.”

If the Houthis were to close this natural chokepoint, the global economic impact could be severe, forcing ships to reroute around the southern tip of Africa, adding thousands of extra nautical miles. This has already contributed to oil prices rising above $100 a barrel, up from closer to $80 weeks prior, according to the BBC. Economist Javed Hassan told Al Jazeera that any further disruption could lead to increased war-risk insurance and charter rates, creating an “inflationary shock through several commodities at once.”

The Houthis have publicly stated they pose no threat to general international shipping in the Red Sea but reiterated their intention to target vessels linked to Saudi Arabia. However, previous Houthi actions have included targeting vessels with no apparent links to Saudi Arabia or Israel, as shipping sources cited by Reuters and BBC Verify reported. The group’s new positions could facilitate attacks on passing ships using shorter-range missiles, said Wolfgang Pusztai.

The UN special envoy for Yemen, Hans Grundberg, warned an emergency security council meeting that the country faced “a new and more dangerous phase of war,” threatening to plunge Yemen into a “prolonged and expanding war” and potentially dragging it into a wider regional confrontation. Instability in Yemen has been exploited by regional powers like Saudi Arabia, Iran, and the United Arab Emirates to fight proxy battles. The US-Israeli war on Iran has further heightened tensions, contributing to one of the world’s worst humanitarian crises. This regional instability has also been exacerbated by wider conflicts, as explored in articles like US Renews Strikes on Iran Amid Rising Tensions.

Impact for Manchester and the UK

While geographically distant, the escalating conflict in Yemen and the Houthi control over the Bab al-Mandeb Strait have direct implications for the UK. Disruptions to global shipping lanes and rising oil prices can lead to higher costs for goods and energy, affecting households and businesses across Manchester and the North West. The increased instability in a critical global trade route underscores the interconnectedness of international events with local economic well-being.


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