Yemen’s Iran-backed Houthi forces have captured two more strategic islands in the southern Red Sea, strengthening their position around one of the world’s most important shipping corridors. The Houthis deployed fighters on Greater Hanish and Lesser Hanish, about 160 kilometers north of the Bab el-Mandeb Strait, according to Yemeni officials and Houthi sources.

The latest advance comes after the Houthis seized the Red Sea port city of Mokha and Mayun Island, which sits inside the Bab el-Mandeb Strait. Together, these gains give the group greater influence over maritime traffic between the Red Sea and the Gulf of Aden.

Why the Red Sea Islands Matter

The Bab el-Mandeb Strait is a critical maritime chokepoint connecting the Red Sea with the Gulf of Aden and the wider Indian Ocean. Ships use the route to travel between Asia, Europe and the Middle East.

The waterway is particularly important for energy shipments. Any major disruption could increase shipping costs, insurance rates and fuel prices around the world.

The Houthi advance is especially significant because the Strait of Hormuz is already heavily disrupted by the wider Iran conflict. This leaves international energy markets facing pressure at two major maritime routes.

Houthis Expand Their Control

The capture of Greater and Lesser Hanish follows a rapid series of Houthi military gains.

The group has recently expanded its presence along Yemen’s Red Sea coast, including the capture of Mokha and Mayun Island. The latest islands were taken after hundreds of government-aligned forces reportedly withdrew from the area.

The internationally recognized Yemeni government is attempting to regroup and push back against the Houthi advance. However, the rapid territorial changes have raised concerns that Yemen could once again descend into a larger civil war.

Growing Threat to Saudi Oil Exports

The Houthi advance is particularly concerning for Saudi Arabia.

With the Strait of Hormuz facing disruption, Saudi Arabia had been relying more heavily on alternative routes to move oil toward Red Sea ports. However, a major Saudi East-West oil pipeline was recently damaged in a drone attack and is expected to remain largely out of service for several weeks.

That leaves fewer options for moving Saudi crude to international markets.

The combination of pipeline damage and Houthi control around the Red Sea could therefore put additional pressure on global oil supplies.

Oil Prices Rise

Energy markets have already reacted to the growing uncertainty.

Brent crude climbed above $107 per barrel, while U.S. crude also moved higher as traders assessed the risks to global supply. Tanker costs have also increased as shipping companies face greater security risks in the region.

Higher oil prices can affect consumers far beyond the Middle East.

When crude becomes more expensive, transportation and manufacturing costs can rise. This can eventually increase the prices of fuel, food and other everyday products.

Houthi Attacks Increase Regional Tensions

The Houthi territorial gains have been accompanied by additional attacks on Saudi targets.

On September 14, the group said it launched missiles and drones toward a Saudi military airbase in Khamis Mushait. Saudi Arabia issued emergency alerts in several southern cities.

The escalation is adding another front to the wider Middle East conflict and increasing pressure on Saudi Arabia and other Gulf states.

Iran’s Influence Raises Concerns

The Houthis are closely aligned with Iran, although the relationship does not mean that Tehran directly controls every Houthi military decision.

Their growing presence around the Red Sea nevertheless gives Iran an additional source of regional leverage.

With Iran already involved in the confrontation surrounding the Strait of Hormuz, Houthi pressure around Bab el-Mandeb could create a second major threat to international shipping. Analysts say this could allow Tehran and its allies to increase pressure on Gulf economies and global energy markets.

Global Shipping Faces New Risks

Shipping companies now face difficult decisions about routes through the Red Sea.

If security risks continue to increase, more vessels could choose longer routes around Africa instead of passing through the Red Sea.

That would increase:

• Travel times
• Fuel consumption
• Insurance costs
• Shipping rates
• Delivery costs

The consequences could eventually reach consumers through higher prices for imported goods.

Yemen Faces a New Humanitarian Crisis

The military escalation is also creating serious consequences for Yemen’s civilian population.

The latest fighting has displaced tens of thousands of people, while renewed clashes threaten to reverse years of relative calm in parts of the country. AP reported that around 94,000 Yemenis had been displaced in September alone amid the latest escalation.

A return to full-scale civil war would add another major humanitarian challenge to an already fragile country.

What Happens Next?

The situation around the Red Sea will depend on several factors.

Key questions include:

• Will the Houthis maintain control of the newly captured islands?
• Can Yemeni government forces regain territory?
• Will Saudi Arabia increase military operations?
• Will commercial shipping continue through Bab el-Mandeb?
• How long will Saudi Arabia’s oil pipeline remain damaged?
• Could oil prices rise further?

The answers could have consequences for both regional security and the global economy.

Conclusion

The Houthi seizure of Greater and Lesser Hanish marks another major escalation in the Red Sea conflict. Combined with their recent capture of Mokha and Mayun Island, the advances give the group a stronger strategic position near the Bab el-Mandeb shipping route.

The development is particularly worrying for global energy markets because Saudi Arabia is already facing disruptions to alternative oil-export routes. With both Bab el-Mandeb and the Strait of Hormuz under pressure, the risk of further increases in oil and shipping costs is growing.

For the global economy, the biggest concern is whether the conflict remains a regional security crisis or develops into a prolonged disruption of international energy and shipping routes.