Name: The New Offensive Raising Oil Prices and Complicating Trump’s Iran War
Uploaded: 2026-09-17T19:00:00Z
Duration: 4 min 4 s
Description: WSJ’s Shelby Holliday explains how the Houthis’ lightning campaign to seize Yemen’s west coast is sending global oil prices spiking once again and the Trump administration scrambling to respond.

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WSJ’s Shelby Holliday explains how the Houthis’ lightning campaign to seize Yemen’s west coast is sending global oil prices spiking once again and the Trump administration scrambling to respond. Photo Illustration: Ryan Trefes/WSJ

https://m.wsj.net/video/20260917/5cee7686-9878-48fb-a9da-fb2d2cebc742/2/hls/manifest-hd-wifi.m3u8

WSJ’s Shelby Holliday explains how the Houthis’ lightning campaign to seize Yemen’s west coast is sending global oil prices spiking once again and the Trump administration scrambling to respond.

The New Offensive Raising Oil Prices and Complicating Trump’s Iran War

There's a new twist in the war in the Middle East. The Iran-backed Houthis pulled off a lightning offensive last week. Now, they effectively control almost all of Yemen's West Coast, including this critical waterway, which is one of the world's busiest maritime choke points. This latest move has sparked fresh fighting, and is having major implications for global oil markets. Plus, it's putting pressure on Saudi Arabia and the US to respond more forcefully. Here's why. The Houthi rebel group has controlled most of Yemen's population for over a decade now. The Houthis are backed and funded by the Iranian regime, and their motto is "Death to America and death to Israel." In the last week, the fighters have swept down the West Coast of Yemen to the narrowest point between the Arabian Peninsula and East Africa. It's known as the "Bab al-Mandeb Strait." The waterway has long been a vital artery for global trade. But during the war with Iran, it's become even more important for global oil markets, with more than four million barrels of oil passing through every day at its peak. Houthi fighters appeared to roll right into a key port long known for its coffee trade. There, they seized armored vehicles and other supplies from the internationally-recognized government of Yemen, which is backed by Saudi Arabia and the US. Then they moved on to another important port, and critically, Perim Island. The five square mile island sits right in the Bab al-Mandeb, providing the Houthis a strategic location to control the waterway. The moves have sent global oil prices higher, and they're putting pressure on the US and Saudi Arabia to respond. After the start of the Iran war, Iran choked off shipments through the Strait of Hormuz, and Saudi Arabia started moving crude through pipelines to the Red Sea. That pipeline has kept oil flowing to global markets, but now Iran and its allies are trying to disrupt those exports. The Houthis restarted attacks on ships carrying oil from Saudi Arabia's Red Sea ports, and Iran-backed fighters launched a massive attack on Saudi's energy facilities. Last Friday, Saudi Arabia shut down its crucial East-West oil pipeline after drones fired from Iraq caused extensive damage. It's not clear when the pipeline, which is capable of carrying up to seven million barrels of oil a day, could be back online. And the Saudis are trying to move more oil through the Strait of Hormuz, in response. But Saudi oil production has already taken a big hit. It's now at its lowest level in more than three decades. The Houthis have promised that they will not let Saudi oil pass through the Bab al-Mandeb. Saudi Arabia and its most powerful ally, the United States, are now scrambling to respond to the crisis. Saudi Crown Prince, Mohammed bin Salman called Trump last week asking the US to get more involved in the fight. But the US doesn't want to get pulled into another front in the war. Last year, a 53-day US campaign against the Houthis ended with the ceasefire deal. For now, the US has advisors in Saudi Arabia helping with things like intelligence and targeting. But the journal has reported that Trump told the Crown Prince, the US would not directly carry out strikes.

The Houthis called us, and they don't wanna fight with us, they let us know, they don't wanna fight with us.

That's left the Saudis scrambling for more military help and a clear path to export its oil. Saudi's Air Force has been striking Houthi targets and Yemen's government forces, which are aligned with Saudi, are vowing to regroup and fight back. But the Houthis are now threatening to strike further into Saudi Arabia in an attempt to pressure the Saudis to withdraw their support for Yemen's government. All of that uncertainty is bad for global oil markets, with Brent crude over $100 a barrel since the Houthi campaign started. Iran and its allies are seeking to use that economic pressure against the US and its Gulf allies as leverage in a war that only seems to be expanding.