The Impact of Houthi Involvement on International Oil Trade
March 28, 2026
The involvement of the Houthis in Yemen could lead to serious impacts on global oil flows and international trade. The missile launched against Israel has raised concerns about shipping in the Red Sea. If the Houthis block the Bab el-Mandeb strait, commercial ships will have to take longer routes. This will result in increased shipping costs and a limitation of available capacity. Lastly, there is uncertainty regarding the ability of the U.S. and other countries to meet the demand for oil from Asia.