Iran Leads Dual Blockade of Strategic Maritime Passages, Pressuring US and Global Oil Markets

Iran and its allied Houthi rebels have imposed a dual blockade on two critical maritime chokepoints in the Middle East, significantly disrupting global oil trade and escalating economic pressure on the United States. Since the recent resumption of hostilities, Iran's Revolutionary Guards have effectively restricted commercial shipping through the Strait of Hormuz, a vital passage through which about 20% of global maritime trade previously flowed. Ship traffic there has plummeted from around 130 vessels daily before the conflict to as few as 10-15 ships per day in recent weeks, with seven vessels attacked since fighting resumed.

Simultaneously, the Houthi rebels in Yemen have partially blocked the Bab al-Mandeb Strait, located between Yemen and the Horn of Africa, which connects the Red Sea to the Gulf of Aden and handles approximately 12% of global trade, including large volumes of Saudi oil exports to Asia. The Houthis recently launched missile and drone attacks on two Saudi oil tankers in the Red Sea, marking the first such assault since declaring the blockade earlier this week. This has forced multiple Saudi vessels to reroute through the longer and costlier Suez Canal path, increasing shipping times and insurance costs.

The combined effect of these blockades has caused a sharp rise in global oil prices, with crude reaching $96 per barrel, up 26% from $76 before the escalation. This surge has pushed US gasoline prices above $4 per gallon, intensifying economic strain domestically and increasing pressure on President Donald Trump to resolve the conflict. Analysts estimate that about 17% of global oil trade is currently disrupted due to the dual blockade, with 10% affected by the Strait of Hormuz closure and 7% by the Bab al-Mandeb restrictions.

Saudi Arabia, the world's largest oil exporter, has been forced to rely heavily on the Bab al-Mandeb route after the Iranian blockade of Hormuz, but the new Houthi actions threaten this alternative. The situation is causing significant volatility in maritime traffic and insurance premiums, with potential delays and increased costs for over 75% of Saudi oil shipments destined for Asia. The ongoing maritime siege underscores Tehran's strategic use of economic pressure to influence US policy amid heightened regional tensions.