Houthi territorial gains in early September 2026, including the capture of Mokha port, Perim Island, and the Hanish Islands, have strengthened control over Yemen’s Red Sea coastline and positions overlooking the Bab el-Mandeb Strait, a key chokepoint handling substantial global oil, LNG, and container traffic. These advances followed the group’s July 2026 maritime embargo targeting Saudi-linked vessels amid broader regional conflicts involving Iran, leading to sharp drops in daily transits—often to 15–25 vessels versus pre-crisis levels near 50—and near-elimination of Saudi-affiliated tanker movements. Traders assign roughly 22% probability of effective closure by December 31, 2026, defined by a seven-day moving average of arrivals at or below 10 per IMF PortWatch data, reflecting sustained selective disruption, insurance adjustments, and carrier rerouting via the Cape of Good Hope without a blanket shutdown. Ongoing clashes and Houthi assurances of open navigation for non-targeted traffic continue to shape assessments of escalation risks through year-end.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedStrait of Hormuz closed by Iran, Bab el-Mandeb under Houthi control
December 31 drops to 13%5%
Iran’s closure of the Strait of Hormuz combined with Houthi control of Bab el-Mandeb created a dual blockade scenario, severely constraining global oil exports and elevating geopolitical risk premiums in energy markets.
Strait of Hormuz remains closed by Iran; Bab el-Mandeb under Houthi control but open to non-Saudi vessels
As of September 18, Iran's closure of the Strait of Hormuz continued, while Houthis controlled Bab el-Mandeb, allowing navigation except for Saudi vessels. This selective blockade maintained transit above closure thresholds, influencing market pricing toward no full closure.


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