Houthi Fighters Advance on Key Yemeni Highlands, Threatening Red Sea Oil Routes

Iran-backed Houthi fighters are advancing on strategic highlands in Yemen in an effort to cut off the Red Sea coast from remaining Saudi-backed forces. The offensive follows a report from *The New York Times* that U.S. President Donald Trump aborted planned airstrikes against the group on Sunday at the last minute.

Strategic Military Push

After a rapid advance this month secured them Yemen's Red Sea coastline, Houthi forces are now attempting to capture the Kahboub Mountains in the Taiz and Lahij provinces, according to five Yemeni military sources cited by Reuters. Control of these strategic heights would allow the Houthis to secure their positions around the Bab al-Mandab Strait, a critical maritime chokepoint, and protect their forces from counterattacks.

Despite hundreds of recent airstrikes by Saudi Arabia, the Houthi advance has reportedly continued with little resistance as Saudi-backed government forces have retreated. The United Nations reports the recent escalation has killed nearly 700 people and internally displaced more than 120,000 Yemenis.

Impact on Energy Markets

The Houthi consolidation of power around the Bab al-Mandab Strait poses a significant threat to global energy logistics. The strait is the primary alternative route for Saudi oil exports to bypass the Strait of Hormuz, where maritime traffic faces heightened risk.

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In response to the disruption, Saudi Arabia has rerouted shipments through Hormuz, increasing exports via that channel to 2.9 million barrels per day (bpd) in recent days, up from just 700,000 bpd in August, according to satellite data. This surge in supply has helped cool global crude prices, which have retreated to near $100 a barrel after approaching $110 last week. However, prices for refined fuels remain elevated, with U.S. retail diesel hitting a new all-time high above $6.51 a gallon on Monday.

Geopolitical Context

The escalation presents a fresh challenge for the Trump administration, which has so far declined Saudi Arabia's requests to join the fight in Yemen. According to *The New York Times*, the U.S. had prepared for airstrikes on Sunday following pleas from the Saudi crown prince, but Trump reportedly called them off as aircraft were being armed. Reuters could not independently verify the report.

The U.S. previously conducted a two-month bombing campaign against the Houthis in early 2025 before a ceasefire was reached. The current situation forces Washington to weigh its alliance with Saudi Arabia against the risk of becoming entangled in a wider regional conflict.