Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
3AUG

Houthis fire second barrage at Israel

2 min read
09:56UTC

The second Houthi missile and drone attack on Israel in a single day confirms staged escalation, with Bab al-Mandeb closure declared openly as the next step.

EconomicDeveloping
Key takeaway

A second Houthi barrage in 24 hours confirms Iran's proxy network is activating in sequence.

The Houthis (Ansar Allah) fired their second missile and drone barrage at Israel on 29 March, following their first attack the previous day . Israeli military claimed interceptions; targets included what the Houthis described as "sensitive military sites" in southern Israel 1. Deputy information minister Mohammed Mansour has explicitly threatened Bab al-Mandeb closure as part of a staged escalation programme.

Tehran coordinated the timing. Houthi entry came the day after Pakistan confirmed US-Iran indirect talks had stalled and the day Iran published its five conditions . Two attacks in 24 hours is a demonstration of sustainable tempo, not a one-off provocation. The Long War Journal reports that Houthi leaders have conditioned further escalation on whether other nations join anti-Iran operations or use the Red Sea for strikes against Iran's allies.

The strategic problem is compounding. Hezbollah fired 600 projectiles at Israel on 28 March . The Houthis are now adding a second axis. Iran's proxy network is activating in sequence, each front requiring separate defensive resources from a coalition already stretched by the primary conflict.

Deep Analysis

In plain English

Yemen's Houthi movement, which controls most of northern Yemen including the Red Sea coast, is an Iranian-aligned armed group. On 28 March it fired its first missiles at Israel. Within 24 hours it fired a second wave. This matters because the Houthis also control the Bab al-Mandeb strait, the other end of the Red Sea from Hormuz. They have now explicitly threatened to close it. The situation in brief: Iran controls one end of the Gulf-to-Red Sea shipping corridor through Hormuz. Its Houthi allies may be about to close the other end at Bab al-Mandeb.

Deep Analysis
Root Causes

The Houthi activation followed Pakistan's confirmation that indirect US-Iran talks had stalled. Tehran appears to have calibrated proxy activation against the diplomacy clock: when talks collapsed, the proxy network activated. This suggests a deliberate coercive strategy rather than autonomous Houthi decision-making.

The Houthis have their own motivations that partially overlap with Tehran's. Bab al-Mandeb closure would be the single largest expression of Houthi strategic power and a recruiting and fundraising windfall domestically in Yemen.

First Reported In

Update #51 · Iran hits aluminium plants; Hormuz emptying

International Maritime Organisation / UKMTO· 29 Mar 2026
Read original
Different Perspectives
Gulf oil producer
Gulf oil producer
Secured OPEC's confirmed 188,000 b/d September increment with the next meeting set for 6 September, but the Secretariat's own 2 August release says nothing about the fourth quarter. Output guidance beyond September remains undisclosed even as delegate sourcing keeps filling that gap.
Money manager positioned in WTI
Money manager positioned in WTI
Added 21,402 lots to a 108,307 net long in NYMEX WTI in the week to 28 July, against just 1,485 added to Brent's 15,740, a roughly fourteen-to-one split. Conviction sits in the American benchmark even as the European diesel story sets the record.
Indian refiner buying Urals
Indian refiner buying Urals
Bought Russian crude at a discount that narrowed to $1-2 a barrel in the week to 29 July from over $10, as Hormuz risk pushed it toward Urals. If that risk eases with the strike now called off, the discount it is currently enjoying could re-widen just as fast.
Russian diesel exporter
Russian diesel exporter
Novak tied any lifting of the diesel export ban, due to lapse 31 July, to an unspecified market recovery with no date, and pushed the gasoline ban to end-2026. An open-ended constraint suits an exporter benefiting from the record European crack it feeds.
War-risk underwriter
War-risk underwriter
Withdrew war-risk cover for Saudi-linked hulls on 24 July and has not reinstated it, holding Bab el-Mandeb tanker transits near 7.5 a day. A cancelled strike does not by itself trigger the committee review needed to re-accept the class.
Northwest European refiner
Northwest European refiner
Sources only 17% of diesel imports from Saudi Red Sea ports against the Mediterranean's 24%, so the ARA crack at $85.86 trails the Med print by $5.81. Lower Red Sea exposure is cushioning it against the rerouting cost, not eliminating it.