10JUL

Houthis threaten second chokepoint

1 min read

09:40UTC

Three days of sustained attacks on Israel establish that Ansar Allah can maintain tempo. The question is whether they close the strait.

← Back to Three shocks, one week, across the oil spreads Jump to analysis ↓

EconomicDeveloping

Key takeaway

The Houthi front is calibrated escalation, not symbolic gestures.

Ansar Allah struck Israel for a third consecutive day on 30 March . All projectiles were intercepted. Deputy Information Minister Mohammed Mansour described Bab al-Mandeb closure as "among our options" in a staged escalation, contingent on Israeli or US ground movement. ¹

No formal blockade has been imposed. All vessels, including US- and Israeli-linked ships, continue to transit. But three days of attacks confirm sustainable operational tempo. Combined with near-total Hormuz closure, a formal Bab al-Mandeb blockade would place simultaneous pressure on the world's two most critical oil transit routes for the first time since the 1973 oil crisis. MARAD and UKMTO have already confirmed deliberate GNSS denial spanning both chokepoints .

Deep Analysis

In plain English

The Houthis control much of northern Yemen and have been attacking ships in the Red Sea since 2024. They are also allied with Iran. For three days running, they have fired missiles and drones toward Israel; all were intercepted. Bab al-Mandeb is a narrow strait between Yemen and Djibouti. About 10% of all world trade and a large share of oil from the Gulf to Europe passes through it. If the Houthis block it, combined with Iran blocking the Strait of Hormuz, two of the world's main oil routes would be shut simultaneously. That last happened in 1973 during the Arab oil embargo. It triggered a global recession. The Houthis have not closed Bab al-Mandeb yet, but their deputy minister said it is an option.

Sources:Al Jazeera

Mentions:UKMTO →Strait of Hormuz →Mohammed Mansour →Bab al-Mandeb →Houthis →

First Reported In

Update #53 · Trump drops Hormuz goal; toll becomes law

Al Jazeera· 31 Mar 2026

Read original →

Causes and effects

Caused by

Houthis strike Israel for third day

A third consecutive Houthi attack on Israel builds on the first two barrages of 28-30 March, establishing sustainable operational tempo.

Occurred 30 Mar 2026

Read story →

GPS blacked out across Gulf chokepoints

GNSS denial across both chokepoints supports the coordinated Houthi-Iran electronic warfare enabling the sustained missile campaign against Israel.

Occurred 29 Mar 2026

Read story →

This Event

Houthis threaten second chokepoint

A formal Bab al-Mandeb blockade combined with Hormuz closure would simultaneously shut the world's two most critical oil transit routes for the first time since 1973.

Different Perspectives

Indian refiners

Indian refiners kept lifting discounted Urals as the India/Baltic price split widened past $9-10 a barrel, a gap that only grows as GL X1's Iranian wind-down cuts an alternative discounted grade off the market by 17 July. Cheaper Russian feedstock is being locked in while it lasts.

Chinese refiners

Chinese refiners gain leverage as the Urals-Brent discount widens, since Beijing's state buyers already source discounted Russian barrels near the fiscal floor unaffected by Western insurance costs. A wider discount, if it holds past 23 July, lets them lock in cheaper term contracts regardless of the cap's outcome.

US money managers (CFTC-tracked)

Managed money trimmed WTI net length into the rally, positioning that reflects doubt the Hormuz premium survives without freight or war-risk confirmation. The Brent-WTI spread widening almost entirely on the Brent leg supports that scepticism about a broad-based repricing.

OPEC+ (Saudi-led subgroup)

Saudi Arabia is defending market share through a fourth straight 188kbd August hike even as OPEC's own July MOMR cut 2026 demand growth for the fourth consecutive month. At a $108-111 fiscal breakeven, every added barrel costs Riyadh revenue it cannot recoup, so the hike reads as a positioning signal, not a demand bet.

Greek shipping registries

Greece, backed by Cyprus and Malta, is pushing a three-month cap-freeze compromise against the Commission's freeze to January 2027 ahead of the 23 July vote. Athens' and Valletta's combined tanker registrations mean a shorter review gives their insurers more frequent chances to reprice risk on Russian cargoes.

Russia (Deputy PM Alexander Novak)

Novak extended the diesel export restriction to producers on 8 July, the first producer-binding curb of the war, protecting the domestic pump price ahead of any refinery repair timeline. Urals still trades below Russia's $59 budget floor even as Brent gained, so the ban trades export revenue for fiscal stability at home.