How global trade and oil prices could be hit by Houthi advance

# Why This Matters The Houthi advance toward the Bab al-Mandab Strait represents a direct threat to one of the world's most economically vital waterways, through which roughly 12% of global maritime trade and a significant portion of Europe's oil supplies pass annually. If the group gains effective control over this chokepoint between Yemen and Djibouti, shipping companies would face substantially higher insurance costs, longer alternative routes around Africa, and potential attacks on vessels—outcomes that would immediately raise consumer prices for goods and energy across developed economies. For oil-dependent nations and regions already managing inflation concerns, even modest disruptions to this route could trigger price spikes that ripple through manufacturing, transportation, and household budgets within weeks. The geopolitical implications are equally significant: a Houthi-controlled strait would amplify Iran's leverage in the region, complicate military operations for U.S. and allied navies, and fundamentally reshape power dynamics in the Middle East.