Houthis Strike Two Saudi Oil Tankers in the Red Sea as US Launches 12th Night of Strikes on Iran

Houthis Strike Saudi Tankers as US-Iran Hostilities Enter 12th Night

Yemen’s Iran-backed Houthi rebels said they attacked two Saudi oil tankers, the Encelia and the Layla, in the Red Sea early Thursday, setting them ablaze. The Saudi Press Agency confirmed one tanker had been hit and reported no casualties, while the UK Maritime Trade Operations centre received a report of a vessel struck by an unknown projectile southwest of Al Shuqaiq. This marks the Houthis’ first reported ship attack since they declared a blockade on Saudi-linked traffic through the Bab el-Mandeb Strait earlier this week, retaliation for a Saudi blockade on Yemen and an airstrike on Sanaa airport.

Meanwhile, the United States conducted a 12th night of airstrikes on Iranian territory, with missile strikes reported near Ahvaz, Ramshir, Andimeshk and Shalamcheh, killing at least two people. US Central Command said the strikes aim to “further degrade Iran’s ability to threaten civilian mariners and commercial vessels.” President Donald Trump warned that each time Iran fires at a ship in the Strait of Hormuz, the US will destroy one bridge or power plant, a threat that raises the stakes for civilian infrastructure on both sides. Secretary of State Marco Rubio, speaking from a regional summit in the Philippines, said Iran does not appear serious about a deal and “they’re paying the price for it.”

The Saudi tanker attack and the widening US bombing campaign highlight a deepening struggle for control of the world’s most critical maritime chokepoints. The Strait of Hormuz, through which a fifth of global traded oil and gas passed in peacetime, remains effectively closed, while the Houthi action threatens the Bab el-Mandeb, a route for 12% of world trade and a quarter of global container traffic. With both passages contested, global energy and goods markets face sustained disruption.

What the Dual Shipping Chokepoint Crisis Means for Global Trade and Security

The Houthi Blockade of Bab el-Mandeb

The Houthi attack transforms a largely contained Yemeni conflict into a direct threat to international oil traffic. The group’s declared blockade on Saudi-linked vessels aims to pressure Riyadh to lift its years-long siege on Yemen, but it effectively weaponises a chokepoint used daily by tankers moving crude from the Gulf to Europe via the Suez Canal. Even a partial disruption can spike insurance premiums, force rerouting around Africa, and tighten oil supply — effects that will radiate through shipping costs and energy prices globally.

Iran’s Escalating Gamble Over the Strait of Hormuz

Iran insists it has the right to manage — and potentially charge fees for — traffic through the Strait of Hormuz, a stance that challenges decades of international law guaranteeing free transit. By attacking ships using the US-overseen route, Tehran seeks to assert sovereignty and inflict economic pain on adversaries. The US response, however, has been the largest sustained bombing of Iranian territory in decades, targeting military and dual-use infrastructure. Trump’s threat to destroy a bridge or power plant per Iranian attack on a vessel marks a deliberate expansion to civilian infrastructure, risking a cycle of retaliation that could draw in Iraq, Bahrain, Kuwait and beyond.

Diplomatic Deadlock and the Risk of Wider War

Despite mediation efforts by Pakistan, Turkey and other regional players, no diplomatic off-ramp is visible. Iran’s parliament speaker Qalibaf said the Strait’s status “will not return to prewar conditions,” while Foreign Minister Araghchi promised an “eye for an eye” response to any attack on Iranian infrastructure. Gulf states, although increasingly pessimistic, continue to push for de-escalation, but as long as both Washington and Tehran see leverage in military force, the conflict will likely deepen. The addition of a Houthi front in the Red Sea only complicates any ceasefire, making a negotiated settlement that addresses both Yemen and the Straits even more distant.

Immediate Steps for Commercial Shipping and Defense Planners

• For commercial shipping companies and insurers: Assume the Bab el-Mandeb is now an active war-risk zone alongside the Strait of Hormuz. Institute additional security measures and prepare for steep war-risk premium hikes for any vessel forced to transit these waters. Rerouting around the Cape of Good Hope adds roughly 10 days and up to US$1 million in fuel costs per voyage for large tankers, making it a costly but potentially mandatory alternative.
• For oil traders and energy-dependent industries: Secure crude and product supplies through west-facing ports (Saudi Arabia’s Red Sea terminals are now directly threatened) and expect sustained volatility in Brent and WTI benchmarks. The simultaneous closure of two major chokepoints effectively removes a significant chunk of global supply from easy access, which could push oil above US$100 a barrel if the blockade persists.
• For defense and security planners: The Houthi attack demonstrates Iran’s ability to open a second maritime front through proxy forces, stretching US naval assets across the region. Allocate surveillance and defensive assets to the southern Red Sea and Gulf of Aden, and review contingency plans for protecting Saudi oil infrastructure and allied shipping.
• For governments and international bodies: The US threat to target civilian bridges and power plants challenges the laws of armed conflict. Prepare for possible legal challenges and humanitarian repercussions, especially as Iran retaliates against energy and desalination infrastructure in Gulf states. Diplomatic channels must urgently address the Houthi blockade separately from the Hormuz standoff to prevent a full-scale regional war.