Houthi Rebels Seize Key Red Sea Island as Saudi Arabia Shuts Down Major Oil Pipeline

Houthi Rebels Seize Key Red Sea Island as Saudi Arabia Shuts Down Major Oil Pipeline

A fight broke out in one of the world’s most intense proxy wars - and it’s happening in one of the most remote places on Earth. Over the course of several days in mid-September 2026, Iranian-aligned Houthi rebels in Yemen gained strategic ground over a critical waterway while Saudi Arabia’s key oil pipeline was shut down due to a drone strike – with crude prices soon soaring past $100/barrel and fears growing about just how far this could go.

This is what happened, and why it matters far beyond the local conflict.

The island that controlled a chokepoint

On September 11, Yemeni Houthi rebels captured the strategically located Mayun (Perim) island at the entrance to the Bab el-Mandeb Strait. The narrow waterway is one of the busiest shipping lanes in the world, linking the Mediterranean and the Indian Ocean via the Red Sea.

According to several news outlets, citing Yemeni authorities, Saudi-backed forces on the island appeared to have withdrawn as the Houthi rebels approached.

The Houthi rebels’ capture of Perim represents their largest territorial gain in several years on the southern coast of Yemen. It comes as part of a larger offensive that has seen most of the Red Sea coastline go under Houthi rebel control.

In a media release on the day of the assault on Perim, Houthi spokespersons stated that they will “respond to the Saudis with escalation for escalation” in the ongoing war with Saudi Arabia, announcing that maritime traffic was “safe for all companies except for the Saudis.” The rebels claimed that their attacks on Saudi ships in the Red Sea were a direct response to a Saudi blockade of Houthi-controlled areas in Yemen, which the rebels accused the Saudis of imposing for years.

Why now - the wider war context

In order to understand why an attack on an island controlled by Iranian-backed rebels is of such great interest to the international community, it is necessary to have at least a brief understanding of the larger geopolitical context in which this particular development is unfolding.

Essentially, there is an open war between the US, Israel, and Saudi Arabia on the one side, and Iran on the other, which broke out at the end of February 2026. This conflict has already resulted in the closure of the vital Strait of Hormuz since mid-March 2026.

Saudi Arabia is the leading oil-producing state in the world, and it has been using its East-West pipeline to bypass the closed Strait of Hormuz. This 745-mile pipeline transports oil from Saudi oil fields to the Red Sea port of Yanbu, from where tankers carry it to other countries.

However, the East-West pipeline currently finds itself in danger from two sides at once.

The pipeline attack

On September 10, Saudi Arabia’s East-West pipeline was damaged by drone strikes. Saudi and Iraqi officials blamed Iran-backed militias in Iraq for the attack, after which Iraq’s prime minister ordered the dismissal of the country’s chief of staff in response to the attack. The Saudi energy ministry announced that it had closed the pipeline for maintenance following the attack.

Essentially, the pipeline is a critical infrastructure for Saudi oil exports – and now it has been temporarily taken out of commission at a time when the Strait of Hormuz is closed. It will be recalled that before the war began, 20% of global oil transit went through the Strait of Hormuz.

There is no alternative to the East-West pipeline in Saudi Arabia, and its temporary closure creates serious problems for the Kingdom in terms of oil exports. Obviously, the oil from the East-West pipeline cannot simply be redirected to the Persian Gulf - there is no infrastructure for this.

Meanwhile, now that the Houthi rebels have taken control of the Perim island and most of the coastline of Yemen, Saudi exports through the Red Sea find themselves in even greater danger. Analysts note that if both the Strait of Hormuz and the Strait of Bab el-Mandeb were to be closed, 30% of global maritime oil trade would be affected by a single conflict.

The response

According to reports, Saudi Arabia has appealed to the United States for assistance in combating the Houthi rebels. Within this framework, the US military is already providing support to the Saudi authorities in Yemen by assisting them in selecting potential targets.

Bahrain released a statement supporting Saudi Arabia’s “right to take all measures to defend its sovereignty,” while another Persian Gulf state noted that the attack on the Saudi pipeline was a “dangerous escalation that undermines regional security.”

President Donald Trump, commenting on the attack on the pipeline during his visit to Ireland, said he believed the situation would “all work out just fine” and speculated that Iran was “probably” responsible for the attack. It is important to note that these are only assumptions on the part of the President, as no evidence has been presented to link Iran to the attack.

Yemen’s defense ministry noted that it has launched several counter-offensives against the Houthi rebels. According to the ministry, Yemeni troops have targeted Houthi rebel positions in several areas controlled by the rebels, attacking their military equipment and vehicles.

Why it matters: the oil prices factor

The volatility of the oil prices is yet another factor that needs to be discussed when examining this development. Essentially, the current geopolitical situation is already having an effect on the world economy and global energy markets.

In particular, this week, oil prices climbed back above $100 per barrel, driven by speculation that global oil supplies could be further constrained if the fighting escalates.

Analysts note that the Houthi rebels are ready to take advantage of the situation to drive up prices in order to inflict the greatest possible economic damage on the US and its allies.

Meanwhile, analysts covering the Middle East have warned that the unpredictable nature of the Houthi rebels is also a factor that needs to be taken into account.

At the moment, it is difficult to predict what steps will be taken next in this proxy war, which has already lasted for several months. It should also be noted that at the moment, diplomatic efforts to end this military confrontation have not borne fruit so far. Thus, the situation in the Middle East, and in particular the current standoff between the warring parties, will be of great interest to readers in the coming days and weeks.