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Iran and its allies are intensifying efforts to disrupt key maritime routes in the Middle East, raising fresh concerns over global oil supplies, shipping costs and fuel prices.
The crisis began with disruptions around the Strait of Hormuz, a vital waterway between Iran and the Arabian Peninsula. Now, Iran-aligned Houthi forces in Yemen have moved to increase pressure around the Bab el-Mandeb Strait, another major trade route connecting the Red Sea with the Gulf of Aden.
What Is Happening In The Strait Of Hormuz?
Iranian forces began disrupting shipping through the Strait of Hormuz after the United States and Israel launched attacks against Iran on February 28. The waterway is one of the world’s most important energy routes, carrying large volumes of oil and other commodities between the Gulf region and international markets. The disruption has already contributed to higher oil and shipping costs. With fewer vessels able to use the route normally, companies have increasingly looked for alternative shipping paths.
Houthis Seize Perim Island
The latest development involves Yemen’s Houthi movement, which announced on September 11 that it had seized Perim Island, a strategically located island near the Bab el-Mandeb Strait.
The island’s location gives the Houthis an important position close to one of the world’s key maritime chokepoints. The move could make it more difficult for commercial vessels to safely use the route. The Bab el-Mandeb connects the Red Sea with the Gulf of Aden and is an important passage for ships travelling between Asia, Europe and other international markets.
Why Are The Strait Of Hormuz And Bab el-Mandeb Important?
The two waterways are critical not only for oil shipments but also for the movement of consumer goods and other commodities. When vessels are forced to avoid these routes, shipping companies generally have to take longer and more expensive journeys. Those additional costs can eventually affect businesses and consumers through higher transportation, energy and product prices. The latest developments have therefore raised concerns that an already strained global energy market could face additional pressure.
Why Are The Houthis Targeting The Red Sea Route?
The Houthis have maintained close strategic ties with Iran and have previously targeted shipping in and around the Red Sea. The group has been involved in Yemen’s civil war since 2014 and has opposed the presence and influence of the United States and its regional allies in the Middle East. A September 10 analysis by Yemen-based Anaween Research Center suggested that the Houthi advance could provide Iran with additional leverage during its conflict with Washington.
The move could also increase pressure on Saudi Arabia by creating another security challenge near an important regional trade and energy corridor.
Oil Prices Rise Amid Shipping Disruptions
The latest developments have already affected crude markets. Brent crude, the international oil benchmark, briefly climbed to almost $110 a barrel before falling to around $104 on September 11. Market participants had previously been able to offset some of the impact of the Hormuz disruption by rerouting shipments through the Red Sea and Bab el-Mandeb.
With that alternative route now facing a fresh security threat, concerns over the availability and movement of oil could intensify. Rebecca Babin, senior equity trader at CIBC Private Wealth, said the market had remained relatively resilient because alternative routes were available despite the disruption around Hormuz.
What Could Happen Next?
If shipping disruptions continue across both routes, energy supplies could face further delays and transportation costs could rise. For countries dependent on imported oil, prolonged disruption could translate into higher fuel prices and broader inflationary pressure. Businesses that rely heavily on international shipping could also face increased operating costs.
The developments have consequently raised concerns that the impact of the Iran conflict could extend beyond the Middle East and affect global trade and economic growth.
