What happened
President Trump has warned that the United States will hold Iran responsible for any future Houthi attacks on ships, following a Houthi strike on two Saudi oil tankers in the Red Sea. In a post on Truth Social, Trump said the Houthis have acted responsibly since the U.S. military campaign against them ended in May 2025, but that they are now starting up again. He stated that if further attacks occur, the U.S. will hold Iran accountable as the Houthis are a proxy of Iran, and major military punishment will be inflicted on both Iran and the Houthis.
Why it matters for the market
The Houthis claimed responsibility for striking the Saudi tankers Encelia and Layla using ballistic and cruise missiles and drones. This marks the first known attacks since the group announced a blockade of Saudi ships attempting to pass through the Bab el-Mandeb Strait on Monday. The Houthis said they will continue naval operations against Saudi Arabia, which has led a coalition against them in Yemen's civil war.
The U.S. is already conducting daily strikes against Iran, with the 12th consecutive night of attacks on Wednesday. U.S. Central Command said it struck Iranian maritime capabilities, missile and drone storage facilities, coastal surveillance sites, and air defense assets.
What traders should watch
Oil prices spiked following the Houthi attack, with Brent crude rising 5.5% to $99.25. The Houthi crackdown on Saudi shipping, combined with Iranian restrictions in the Strait of Hormuz, threatens to further disrupt energy markets. In 2023, roughly 29.6 million barrels of oil traveled through these passages daily, accounting for about 28% of global consumption.
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