Iran and Houthis block two key global shipping routes

Key Points:

• Iran and its allies have intensified efforts to disrupt major Middle Eastern oil shipping lanes, including the Strait of Hormuz and now the Bab el-Mandeb Strait, threatening to increase U.S. and global fuel prices further.
• The Yemen-based Houthi militia, aligned with Iran, seized Perim Island on Sept. 11, gaining control over the Bab el-Mandeb Strait and consolidating influence over two critical global trade chokepoints.
• Disruptions in these strategic waterways not only affect oil exports but also impede the shipment of consumer goods and commodities, potentially triggering global economic strain and raising fears of a recession and widespread hunger.
• The Houthis' control of Bab el-Mandeb complicates regional security, prompting Saudi military airstrikes and potentially escalating the Yemen conflict into a broader international issue involving Iran.
• The instability has caused Brent crude prices to spike near $110 per barrel and diesel prices in the U.S. to surge above $6 per gallon, with experts warning of ongoing energy security challenges and inflationary pressures worldwide.