Yemen’s Houthis declare naval blockade on Saudi Arabia, escalating global energy risks

Yemen’s Houthi movement announced on Monday that it will impose a naval blockade on Saudi Arabia, a move that raises the prospect of a new front opening in the US-led war with Iran and poses fresh threats to global energy supplies and trade stretching far beyond the Gulf.

The escalation followed one of the bloodiest periods of the war for American personnel. On Monday, the Pentagon released the identities of two US service members killed in an Iranian attack on a US base in Jordan on Friday. Officials also reported that unidentified remains had been recovered, which are believed to belong to a third service member previously listed as missing in the clash. In a separate incident, a fourth American soldier was killed in northern Iraq during the “controlled demolition” of unexploded ordnance left by a downed Iranian one-way attack drone.

Following the Houthi blockade declaration, the Saudi-led coalition in Yemen announced in a statement that it would respond to the move with force. The coalition also stated that it has begun implementing measures to protect its vessels transiting the Bab al-Mandab Strait, which has become a critical export route for Saudi crude after the de facto closure of the Strait of Hormuz.

The Houthis made their announcement after mutually hostile strikes rendered a fragile temporary agreement, signed last month between Tehran and Washington, non-functional. Nevertheless, both sides also signaled an openness to negotiations. The Iranian Ministry of Foreign Affairs indicated that diplomatic contacts are continuing, noting that mediators had presented certain “proposals” to Tehran, though it did not share specific details.

Oil prices rose briefly following the Houthi announcement but subsequently fell back as investors maintained hope for a diplomatic solution. However, insurance costs for transporting goods through the Red Sea increased due to the heightened risks facing commercial shipping.

Iran had previously requested that the Houthis close the Bab al-Mandab Strait, which opens into the Red Sea, should the US continue its attacks on Iran’s energy infrastructure.

A complete closure of the strait could reduce global oil supplies by 7%, as the bulk of Saudi Arabia’s oil exports would be blocked from leaving the region. This disruption would add to the major supply contractions caused by the Gulf war, which have already disrupted shipments equivalent to 10% of global supply.

In statements issued by their armed forces, the Houthis declared that they were imposing “a naval embargo against the criminal Saudi enemy, effective immediately on an eye-for-an-eye basis,” in response to what they termed the “unjust and cruel siege” imposed on Yemen by Saudi Arabia.

Diplomatic initiatives to restore the ceasefire

A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire. The initiative is reportedly aimed at saving the temporary agreement, which was intended to pave the way for a deal that would permanently end the war that began on February 28 with US and Israeli strikes against Iran.

Neither the Iranian Foreign Ministry nor the official who spoke to Reuters provided details regarding the reported ceasefire talks under discussion.

Meanwhile, two sources in the Pakistani government said that Iranian Interior Minister Eskandar Momeni had requested that Pakistan resume its role as a mediator in the conflict. Momeni subsequently traveled to Islamabad for new talks.

The diplomatic maneuvers came after a fresh overnight round of US strikes on Iranian cities and subsequent attacks by the Islamic Revolutionary Guard Corps (IRGC) targeting American military assets in the region. US Central Command announced that it had launched a new wave of strikes against Iran on Monday afternoon, US time.

Facing mounting domestic political pressure due to rising gasoline prices—which have climbed steadily since the outbreak of the war and Iran’s de facto closure of the vital Strait of Hormuz—US President Donald Trump defended the latest strikes against Iran as retaliation for the American soldiers killed in recent Iranian attacks.

“Whenever Iran kills an American soldier, they will pay the price many times over! This instruction has been conveyed to Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Daniel Caine, and all commanders in the military,” Trump said in a post on his Truth Social account on Monday.

Iran: Tankers exploded

The IRGC announced that two oil tankers exploded while attempting to transit the strait via an “unsafe” route. On Sunday, the Revolutionary Guards had reported that two vessels were involved in an “accident” in the same area. It remains unclear whether the two incidents are connected.

Reuters was unable to independently verify the incident. The IRGC statement did not provide details regarding the identities of the vessels or any casualties.

Separately, the United Kingdom Maritime Trade Operations (UKMTO) agency reported that a vessel was struck by an unidentified object off the coast of Oman, overlooking the Strait of Hormuz.

In Iran, explosions were reported in Tabriz, Chabahar, Konarek, Bandar Mahshahr, and Bandar Imam Khomeini. According to the state news agency IRNA, one person was killed and several others were injured southwest of Tabriz.

The Revolutionary Guards announced that they had targeted American aircraft at Jordan’s Aqaba Airport with ballistic missiles. The statement added that military assets at Camp Adiri and Ali Al Salem Air Base in Kuwait, as well as several positions in Syria, were also struck.

Sirens sounded across Bahrain throughout Monday, while the Kuwaiti military announced early Tuesday morning that its air defense systems had once again intercepted Iranian drones.