Houthi militia declares naval blockade on Saudi Arabia, raising oil supply fears and crypto safe-haven debate

The Houthi militia declared a maritime blockade on Saudi Arabia on July 20, framing the move as retaliation for what they call a prolonged Saudi siege on Yemen. Military spokesman Brig.-Gen. Yahya Saree announced the embargo was effective immediately, describing it as “an eye for an eye.” The target: Saudi ports and shipping lanes through the Bab el-Mandeb Strait, a narrow chokepoint at the southern tip of the Red Sea that handles roughly 7% of global oil supply. What the blockade actually looks like The Houthis, formally known as Ansar Allah and aligned with Iran, have already begun warning shipping companies via email not to use Saudi ports. The messaging is blunt: vessels risk attacks “in any location” within the group’s reach. Saudi oil exports through the Red Sea port of Yanbu have reportedly averaged around 4 million barrels per day. That volume flowing through waters now declared hostile is enough to make energy traders lose sleep. The Bab el-Mandeb Strait sits between Yemen on one side and Djibouti and Eritrea on the other. It’s only about 20 miles wide at its narrowest point. Every tanker heading from the Persian Gulf to Europe or the US East Coast via the Suez Canal has t...