Fighters loyal to the Iran-backed Houthi movement reportedly advanced onto Yemen's strategic Perim Island on Friday, a move that would extend the group's control over one of the world's most critical shipping chokepoints.
The reported push onto Perim, cited by multiple news agencies quoting Yemeni government sources, comes a day after the Houthis seized the Red Sea port city of Mokha. CNBC could not independently confirm the report.
Perim Island sits in the middle of the Bab el-Mandeb Strait, which links the Red Sea to the Gulf of Aden and onward to global markets. The capture of Mokha, located roughly 75 kilometers (46 miles) north of the strait, opened the door for further Houthi advances along the coastline, according to Hamish Kinnear, principal Middle East and North Africa analyst at risk intelligence firm Verisk Maplecroft.
"The Houthis were already threatening Saudi shipping from previous positions, but their capture of Mokha opens up the possibility of further advances towards the Bab el-Mandeb coastline and a tighter grip on the chokepoint," Kinnear wrote in a research note.
The rapid ground offensive represents a severe setback for Saudi Arabia and the Yemeni government forces it backs. It also places Iran and its proxies on course to exercise influence over two of the world's most vital oil chokepoints: the Bab el-Mandeb and the Strait of Hormuz, which flank either side of the Arabian Peninsula.
The advance prompted Saudi Crown Prince Mohammed bin Salman to personally press President Donald Trump for U.S. military intervention, MS NOW reported later Friday, citing a person familiar with the conversations. Trump declined, saying the United States does not plan to widen its regional military campaign to include the Houthis, the person said. Axios first reported the calls.
A senior administration official told CNBC the United States remains focused on protecting core national security interests, including freedom of navigation in the Red Sea, while empowering regional partners to take the lead in managing security challenges. The official added that Washington is in continuous dialogue with Saudi Arabia.
Both Tehran and Washington believe time is on their side, making a new truce unlikely in the near term, Kinnear said. "Oil and gas prices, and more specifically refined products such as diesel, will continue to tick upwards while that remains the case — even if US convoys and Strait of Hormuz export alternatives cushion the price impact."
Oil prices traded sharply lower on Friday, but both major benchmarks could still close the week above $100 per barrel for the first time since mid-May. Brent crude futures with November expiry fell 3.3% to $104.21 per barrel, while U.S. West Texas Intermediate futures with October expiry declined 3.4% to $99.08.
The resilience of the oil market is being tested by growing recognition of mounting threats to regional supply, strategists at ING said, with energy participants repricing both the duration and severity of the conflict. Even as flows continue through the Strait of Hormuz, they remain well below prewar levels, ING noted. "Saudi energy infrastructure and crude oil exports from the Red Sea are increasingly at risk, with the Houthis in Yemen targeting Saudi Arabia," strategists Warren Patterson and Ewa Manthey wrote in a research note.
