Recent Houthi territorial gains along Yemen’s Red Sea coast, including the September 2026 seizure of Mokha port and Perim Island in the Bab al-Mandeb Strait, have heightened risks to oil tanker transits and Saudi crude exports rerouted via the East-West pipeline. Brent crude surged above $105 per barrel following these advances and related pipeline disruptions, while shipping volumes through the strait contracted sharply and freight rates spiked. Trader sentiment on the market reflects elevated probabilities of further maritime incidents amid the group’s declared blockade on Saudi-linked vessels, with market-implied odds shaped by ongoing attacks on energy infrastructure and the potential for broader supply disruptions. Key near-term catalysts include any escalation in Saudi or international responses and upcoming oil inventory data that could influence energy benchmarks.