Houthi Entry Into Iran-Israel War Stokes Fresh Alarm Over Red Sea Trade Routes and Global Oil Prices

Iran-backed Houthi rebels entered the ongoing war between the United States, Israel and Iran — now in its second month — on Saturday, firing what they described as a barrage of ballistic missiles at 'sensitive Israeli military sites' in southern Israel, their first strikes since the conflict erupted. The Israeli military said it intercepted a missile fired from Yemen, with air raid sirens triggered around Beersheba and the area near Israel's main nuclear research centre.

The development, which had been anticipated after Houthi Brig Gen Yahya Saree issued a warning the previous day, has sent a fresh wave of alarm through global markets. Analysts and shipping experts fear the rebels may now revive their campaign against commercial vessels in the Red Sea — a move that would compound an already severe disruption to international trade caused by Iran's stranglehold over the Strait of Hormuz.

A Second Chokepoint Under Threat

The militia's attacks on shipping vessels during the Israel-Hamas war upended commercial transit in the Red Sea, through which about $1 trillion (approximately £780 billion) worth of goods passes each year. Now, with the Houthis actively in the conflict, experts are warning of a dangerous scenario in which two of the world's most critical maritime corridors could be simultaneously disrupted.

Mohamad Elmasry, a professor of Media Studies at the Doha Institute for Graduate Studies, described the Houthis entering the US-Israeli war on Iran as 'very significant,' adding: 'If they decided to move to shut down Bab al-Mandeb strait, the Red Sea and, ultimately, the Suez Canal, then we would have two major choke points [closed] along with the Strait of Hormuz. These are major international shipping waterways for international trade.'

Ibrahim Jalal, a senior researcher on Yemen and the Gulf, echoed those concerns, saying that the threat to shipping around Yemen is 'very alarming especially when it's compounded by a coordinated multi-strait blockade,' adding: 'This is exactly the theatre that Iran has been preparing for from what we have seen in the past few years with the Houthis.'

'Our Fingers Are on the Trigger'

The Houthis attacked over 100 merchant vessels with missiles and drones, sinking two vessels and killing four sailors, from November 2023 until January 2025, saying their attacks were in support of Hamas during the war in Gaza. That campaign caused shipping firms to reroute vessels around the Cape of Good Hope, dramatically increasing transit times and costs. President Donald Trump eventually halted US strikes on the Houthis after a deal that saw the rebels standing down their attacks on commercial ships.

That deal now appears increasingly fragile. Saree warned in a statement on Friday: 'Our fingers are on the trigger,' as the group signalled it would not allow the US and Israel to use the Red Sea for attacks against Iran. Ahmed Nagi, a senior Yemen analyst at the International Crisis Group, said that renewed Houthi attacks on vessels would not only push up oil prices further but destabilise 'all of maritime security,' warning that 'the impact would not be limited to the energy market.'

Calculated Escalation or Full Return?

Not all analysts believe the Houthis are preparing an immediate and wholesale return to Red Sea strikes. Bridget Toomey, a research analyst at the Foundation for Defense of Democracies, said: 'The decision to target Israel could be a calculated move on the part of the Houthis meant to signal they are still a threat, adding to Iran's leverage in any negotiations. The group likely assesses that limited attacks on Israel are unlikely to invite a strong response.'

Jonathan Schanzer, executive director at the Foundation for Defense of Democracies, was more direct, warning that 'the concern now is whether the Houthis use this opportunity to try to block the Bab al-Mandeb Strait to shut down shipping in the Red Sea at the direction of the Islamic Republic. This could roil energy markets even more.'

The Houthis had threatened as far back as 28 February 2026 to escalate the conflict and resume attacks in the Red Sea in response to the Iran war, having previously paused their campaign after a Gaza ceasefire was reached in October 2025.

The Houthis' entry into the Iran-Israel war marks a significant widening of a conflict that has already killed thousands and rattled global energy markets. With the Strait of Hormuz already under Iran's effective control, any move by the Houthis to block the Bab al-Mandeb would leave global shipping with no viable shortcut between Asia and Europe — a scenario with profound consequences for oil prices, supply chains and the broader world economy.