The Saudi-led coalition in Yemen struck Houthi targets on Saturday in response to missile attacks by the Iranian-backed group, triggering immediate volatility in global energy markets. Brent crude closed on Friday at $96.78 a barrel, having soared about 27% in the past two weeks as US-Iran skirmishes worsened and instability extended to the Red Sea. This escalation underscores how quickly the conflict is widening, with the Houthis opening a second front in the US-Iran war by announcing a blockade of shipping routes through the Red Sea.

The Joint Forces Command of the Coalition, supporting Yemen’s internationally recognized government, stated its forces hit "legitimate military targets" used by the Houthis to threaten commercial vessels. The Yemeni government air force also carried out strikes on Houthi missile and drone launch sites. Saudi authorities announced warnings for Jazan and Yanbu early Saturday morning, asking people to seek shelter, but later lifted the warnings stating the danger had passed.

Energy Market Impact

Crude prices continue to spiral upward, temporarily breaking back above $100/bbl as the Iran War escalated and the Houthis more directly joined the conflict with a maritime blockade on Saudi Arabia, according to Rory Johnston, an oil market researcher. Any disruption to Saudi Arabia’s Red Sea export routes would likely push up oil prices even more. The US Energy Information Administration (EIA) stated that 12% of world oil shipments used to transit through the Bab El-Mandeb Strait, a critical 100-kilometer waterway separating Yemen from Djibouti and Eritrea.

Shipping Disruptions

The blockade has begun to affect shipping through the region’s chokepoints. Windward, a maritime intelligence company, reported that a Greece-flagged VLCC signaling "Suez for orders" stopped short of the Gulf of Aden on Wednesday and appears to be diverting away after a 12-hour pause. That is one of six tanker diversions Windward has tracked in two days. A Hong Kong-flagged supertanker bound for Yanbu made a U-turn, Bloomberg News reported on Saturday.

Bab el-Mandeb recorded 49 confirmed crossings on Friday, including five sanctioned vessels, 11 shadow-fleet vessels, and four dark transits, according to Maritime Traffic. Several ships that had previously reversed course later completed their passages. The security posture shifted following the confirmed Houthi attack on a Saudi-flagged tanker on Wednesday, which the Joint Maritime Information Center (JMIC) said demonstrated a renewed willingness and capability by Houthi forces to target specified merchant shipping.

Geopolitical Escalation

The Houthis claimed to have struck Saudi Arabia with missiles on Saturday morning, deepening their involvement in the Middle East war. Military spokesman Yahya Saree said the Houthis launched two "sensitive operations" against Saudi Arabia and that the principle of a "blockade for a blockade" will continue. The militia targeted Jazan, home to an oil refinery with a capacity of 400,000 barrels a day, and Yanbu, a strategic port where Saudi exports approximately tripled to a record high of around 4 million barrels a day in the spring before falling back slightly.

On Thursday, US President Donald Trump said he would hold Iran responsible for further attacks by the Houthis, calling them a surrogate or proxy of Iran. The Saudi-led coalition denied reports that it had targeted Hodeidah Port, stating all Yemeni ports remain open to maritime navigation. Iran remains the main funder and sponsor of the Houthis, adding another layer of geopolitical risk to a conflict already reshaping regional energy security.

Global oil prices fell sharply, with both major crude benchmarks recording significant losses. Brent crude declined over $4 to reach $96.48 per barrel, while West Texas Intermediate (WTI) dropped over $3 to $88.82 per barrel, reflecting a broad-based selloff across energy markets.

Oil Benchmark Performance

The latest price movements highlight a notable retreat in crude oil valuations across both internationally tracked benchmarks. The following table summarizes the price levels and declines recorded:

Key Highlights

• Brent crude fell over $4 to $96.48 per barrel
• WTI crude declined over $3 to $88.82 per barrel
• Both major oil benchmarks recorded simultaneous losses
• The drop reflects a broad-based retreat in global crude oil prices

Market Overview

The decline in Brent crude to $96.48 per barrel represents a drop of over $4, marking a significant move for the internationally recognized benchmark. WTI, the primary US crude benchmark, also saw a decline of over $3, settling at $88.82 per barrel. The concurrent fall in both benchmarks underscores the widespread nature of the price correction observed in crude oil markets.