What happened
Houthi attacks on Saudi oil depots along the Red Sea on Sunday have caused a significant slowdown in ship traffic through the Bab el-Mandeb Strait, according to data from analytics platform Kpler. The strait saw only 11 cargo vessels pass through on Monday, marking the lowest number in months, as the militant group's actions disrupt a key global energy chokepoint.
Why it matters for the market
Among the vessels tracked, three of seven oil tankers entered the Red Sea, with two heading to the Saudi port of Yanbu to load crude. One tanker was linked to Russia, while four others carried 2 million barrels of Saudi and Emirati crude. A separate very large crude carrier (VLCC) under a Hong Kong flag was also spotted, and a tanker carrying 750,000 barrels of Saudi crude was en route to Pakistan.
The Houthi-led blockade, imposed last week in response to a strike on Sanaa International Airport, aims to disrupt commercial traffic and pressure U.S. partners in the Persian Gulf. The Trump administration has designated the Houthis as a foreign terrorist organization, and Iran backs the group. President Trump warned that Iran would be held responsible for the attacks.
Oil prices reacted moderately to the news, with international benchmark Brent crude dipping to just above $90 per barrel, after having spiked to around $101 earlier in the week. West Texas Intermediate (WTI) fell to more than $83 per barrel. The Bab el-Mandeb Strait sees about 8% of global oil transit, much of it from Saudi Arabia bypassing the Strait of Hormuz.
What traders should watch
Market participants are now monitoring the situation for further escalation. The reduced traffic raises fears of supply disruptions, which could fuel intraday volatility in oil-linked currencies and energy stocks. Speculative traders may look for quick entries if tensions spike or if diplomatic efforts emerge to de-escalate the conflict.
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