Yemen Monitor / Newsroom / Agencies:
The global economy is facing the specter of what could become the largest energy crisis in history, with high-level economic warnings of a dramatic surge in oil prices to as much as $140 per barrel if the Houthi group expands its target list to include crude flows passing beyond the Strait of Hormuz, in response to escalating Iranian pressure, according to Bloomberg.
The agency reported that Iran is counting on the Houthis to shift the balance in the Red Sea, noting that the group’s involvement in the conflict carries the risk of retaliatory strikes by the United States or Israel.
Bloomberg Intelligence warned of catastrophic consequences for global market stability as a result of the Houthis’ involvement in the escalating regional conflict between Iran on one side and the United States and Israel on the other.
The report indicated that targeting crude oil shipments passing through the Red Sea would disrupt a vital route relied upon by countries worldwide as a key alternative, especially amid Iran tightening control over the Strait of Hormuz.
Estimates by Bloomberg Intelligence suggest that the Houthi threat extends beyond commercial shipping and could trigger a “historic disruption” in energy supplies. If the group carries out its threats to target oil flows, prices could soar to record levels (around $140 per barrel), leading to a wave of global inflation and a severe supply shortage surpassing previous oil crises.
Bloomberg added that as the U.S.-Israeli war against Iran enters its second month, leadership in Tehran is urging the Houthis to prepare for a renewed campaign against Red Sea shipping. This comes as Iran’s tightening grip on oil and gas shipments through the Strait of Hormuz has already caused a sharp rise in global energy prices.
All indicators suggest that Houthi leader Abdul-Malik al-Houthi is laying the groundwork for deeper involvement, despite ongoing internal divisions over how far to escalate.
Two days before the Houthis launched ballistic missiles toward Israel on Saturday—and vowed further action if attacks against Iran and its Lebanese ally Hezbollah continue—al-Houthi delivered a televised speech outlining the justification for joining the conflict.
He stated: “We repay loyalty with loyalty,” adding that during the peak of the U.S.-backed Saudi-led military campaign a decade ago to remove the group from Yemen’s capital, Sana’a, “the only party that stood by us” was Iran and the so-called “Axis of Resistance,” particularly Hezbollah.
However, entering the regional war carries serious risks of U.S. or Israeli retaliation against a group still recovering from previous strikes. Officials in Washington and Riyadh have reportedly told European allies they believe the Houthis currently seek to avoid further escalation.
Shipping in the Red Sea has yet to fully recover from the group’s campaign during the Gaza war, and the continued threat of attacks still deters most Western companies from approaching Yemeni waters.
Bloomberg Intelligence estimates that oil prices could rise to $140 per barrel—intensifying what is already considered the largest disruption to energy supplies in history—if the Houthis begin targeting crude oil flows passing beyond the Strait of Hormuz.
