Iran-backed Houthis seized Yemen’s key Red Sea port of Mocha on Thursday, advancing toward strategic islands and threatening vital shipping routes. The escalation pushed Brent crude above $108 per barrel as global markets reacted to the deepening conflict.

Market Reaction

U.S. stock futures showed mixed performance on Thursday evening. Dow futures rose 93 points, or 0.18%, to 52,188.00, while S&P 500 futures gained 9.50 points, or 0.13%, to 7,608.00. Nasdaq 100 futures slipped 4.50 points, or 0.02%, to 29,130.75 as of around 8:45 pm EDT.

In commodities, energy prices surged on supply concerns:

The U.S. dollar index stood at 99.070, down 0.02%. Asian markets traded lower, with South Korea’s KOSPI falling 2.39% to 6,865.99 and Japan’s Nikkei 225 declining 2.95% to 63,344.86.

Strategic Implications

Yemeni government military sources reported that the Houthis captured Mocha and moved toward the Hanish Islands, increasing leverage over the Bab el-Mandeb Strait. This waterway links the Red Sea with the Gulf of Aden and serves as a critical maritime chokepoint.

Control of this route provides Iran and its allies with a potential pressure point over global energy shipments. This development compounds existing disruptions in the Strait of Hormuz, through which roughly one-fifth of global oil supplies previously passed. Preliminary tracking data showed only seven vessels crossed the Strait of Hormuz on Wednesday.

The Houthi-controlled humanitarian operations center stated that Red Sea navigation remains safe for most shipping companies but warned that Saudi vessels are excluded. This exclusion is significant as Saudi Arabia increasingly relies on the Red Sea route after the conflict restricted access through Hormuz.

Political Context

The escalation complicates President Donald Trump’s efforts to end the conflict. Trump has stated he expects the Iran war to conclude after the November midterm elections. U.N. officials warned that Yemen was entering a "new and more dangerous phase," while the U.S. accused the Houthis of acting as Iranian proxies.

Yemen's Houthi forces have escalated their maritime operations, with a spokesperson announcing that the Yemeni armed forces successfully targeted the Saudi oil tanker 'Daisy' in the Gulf of Aden using a ballistic missile. The announcement, made via a post on X, also warned that Houthi forces are meticulously monitoring all movements of Saudi oil tankers and will not allow any such vessel to pass through the region.

Incident Overview

The Houthi military spokesperson confirmed the strike on the Saudi oil tanker 'Daisy', marking a significant development in the ongoing maritime tensions in the Gulf of Aden and the broader Red Sea region. The Gulf of Aden serves as a critical maritime corridor connecting the Red Sea to the Arabian Sea, and is a key route for global oil and energy shipments.

Houthi Warning on Saudi Oil Tankers

Beyond the immediate strike, the Houthi spokesperson issued a broader warning, stating that forces are meticulously monitoring all movements of Saudi oil tankers and will not allow any ship to pass. This declaration signals a deliberate and targeted campaign against Saudi maritime oil trade, raising concerns over the safety of energy shipments transiting through one of the world's most strategically important waterways. No additional details regarding damage to the vessel or casualties were included in the available source information.