In the early hours of July 23 local time, Yemen’s Houthi group announced they had attacked two Saudi oil tankers in the Red Sea. The vessels, identified as the “ENCELIA” and “LAYLA,” were accused of violating a recent maritime blockade declared by the group.
The Houthis deployed ballistic missiles, cruise missiles, and drones in the operation, claiming the strikes precisely hit both tankers and ignited fires onboard. The day’s actions also forced about ten nearby ships to turn back.
Meanwhile, the UK Maritime Trade Operations Office reported a security incident involving an oil tanker about 70 nautical miles off the coast of Al Shuqaiq, Saudi Arabia. The ship’s captain stated the vessel was struck by a projectile of unknown origin, causing a fire. It remains unclear if the two incidents are connected.
On the other side of the Arabian Peninsula, the conflict is escalating. At 5:30 AM Beijing time on July 23, US forces launched a new round of strikes against Iranian military targets, marking the 12th consecutive night of such operations.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi both posted on social media on July 22, stating that the situation in the Strait of Hormuz will not return to its pre-war state. They warned that if Iran cannot export oil from the region, no other country will be able to either, and if Iran’s security is not guaranteed, no infrastructure in the region will be safe.
Earlier that day, former US President Donald Trump posted on social media, declaring that from now on, if Iran fires on ships in the Strait of Hormuz—whether with missiles, rockets, drones, or any other device or weapon—the US will bomb and destroy an Iranian bridge or power plant.
Iran’s military responded defiantly, threatening that if the US strikes its bridges or power plants, Iran will retaliate by targeting energy and other infrastructure in the region linked to American interests.
Amid the US-Iran conflict and the Houthi threat to Red Sea shipping, Brent crude oil broke through $95 per barrel during trading, while WTI settled 2.3% higher at $86.30.
Houthi spokesperson Yahya Saree announced on July 20 a maritime blockade against Saudi Arabia, in response to what he described as over a decade of sieges on Yemeni ports and airports, as well as recent airstrikes on Sana’a International Airport. The closure of the Bab el-Mandeb strait and strikes on ports like Jeddah, Jizan, and Yanbu took effect immediately.
Later that day, the Houthis sent emails to multiple shipping companies, stating the restrictions apply not only to vessels flying the Saudi flag but also to ships loading or unloading cargo at Saudi ports. They urged shipping firms to exercise “due caution” when planning voyages involving Saudi ports, warning that vessels involved in related trade could “become targets” within the group’s operational range.
In response, the Saudi-led coalition took measures to protect coalition vessels transiting the Bab el-Mandeb strait, vowing to act against any threats to shipping security in accordance with international law and the UN Convention on the Law of the Sea. Kuwait, Qatar, and other coalition members also reaffirmed their support for freedom of navigation under international law.
The Houthis and Iran both belong to the Shia branch of Islam, with deep roots in northern Yemen. Iran’s Islamic Revolutionary Guard Corps is the Houthis’ primary external backer. The Houthis are leveraging the window of the US-Iran conflict to expand their influence, while Iran uses the Houthi-controlled Red Sea shipping lane, forming a symbiotic relationship.
The Bab el-Mandeb strait is also a critical chokepoint for Saudi energy exports. Saudi Arabia holds proven oil reserves of 267.2 billion barrels, the second-largest in the world, and 6 trillion cubic meters of natural gas, accounting for about 3.2% of global reserves. Oil revenue makes up 68% of the kingdom’s state income and 27% of its GDP.
Like the situation in the Strait of Hormuz, the Houthi blockade is set to push up global energy and shipping costs, disrupt global supply chains, and escalate regional geopolitical tensions. Under the Shahba Defense Treaty, Pakistan could also be compelled to join the conflict, pushing the already fragile Middle East situation back toward the brink of失控.
Analysts say the current “twin strait blockade” scenario means roughly 25% of the world’s crude supply is at risk. War risk insurance premiums have skyrocketed, with the cost of a single transit for an oil tanker soaring from $250,000 to $10 million, forcing many vessels to stay put. Rising costs for energy, shipping, and food will dramatically increase global inflation, directly hitting global manufacturing and trade systems.