Houthi Entry Into Iran War Raises Alarm Over Global Oil Routes and Indian Crude Imports

Yemen’s Houthi rebels enter the Iran war, firing missiles at Israel and raising fears of disruption at the Bab al-Mandab Strait. The escalation threatens global oil trade and Indian crude imports, as tensions grow across key maritime chokepoints linked to Iran’s strategic influence.

Yemen's Houthi rebels waded into the Iran war over the weekend, an escalation experts had predicted, potentially delivering a second shock to Indian crude oil imports already impacted by the Strait of Hormuz blockade.

The Houthis, a heavily armed, Iran-backed militia claiming to represent a Shia minority, had earlier war

Yemen's Houthi rebels waded into the Iran war over the weekend, an escalation experts had predicted, potentially delivering a second shock to Indian crude oil imports already impacted by the Strait of Hormuz blockade.

The Houthis, a heavily armed, Iran-backed militia claiming to represent a Shia minority, had earlier warned Israel that their “fingers are on the trigger.” They acted on that warning Saturday, firing missiles at Israeli military sites. Experts stated that their entry “marks a serious and deeply concerning escalation.”

The group controls parts of Yemen's western coastline, including the Red Sea port city of Hodeidah and mountain strongholds overlooking the body of water. This strategic positioning enables them to threaten shipping through the Bab al-Mandab Strait, located on the opposite end of the Arabian Peninsula from the Strait of Hormuz and serving as a critical link between the Red Sea and the Indian Ocean.

As of now, there is no specific Houthi blockade, and the strait remains open to all vessels, including those flying American or Israeli flags. There has been no formal Houthi comment suggesting a blockade. However, the potential risk persists.

If the Houthis begin targeting Israeli forces, it signals a layering of the battlefield that complicates ongoing peace talks, particularly if Tel Aviv retaliates. It also indicates that Iran holds a chokehold on regional seaborne oil trade—estimated at a combined 30 to 35 percent—and may be tightening its grip.

Iran has also suggested such a possibility. An unnamed Iranian official told Al Jazeera that attacks on islands, likely referring to discussions of US ground strikes on Kharg Island, could prompt Tehran to open a new front at the Bab al-Mandab.

Before the Iran war and prior to late-2023 Houthi strikes on shipping lanes, approximately 10 to 12 percent of the world’s seaborne crude passed daily through the Bab al-Mandab Strait. Early 2023 peak flows ranged between 8.7 and 9.3 million barrels per day.

By mid-December 2023, analysts from S&P Global reported that tonnage transiting the strait had dropped by over 50 percent, with several shipping firms rerouting traffic via the Cape of Good Hope. Disruptions to shipping through the Bab al-Mandab continued throughout 2024 and 2025.

This evolving situation underscores the growing volatility in critical maritime chokepoints and signals heightened risks for global energy supply chains, with significant implications for India and the broader international oil market.