Houthis announce naval blockade on Saudi Arabia as oil supply risks widen

DUBAI/CAIRO: Yemen's Houthis said on Monday they were enforcing a naval blockade against Saudi Arabia, extending the danger to energy shipments and maritime trade beyond the Gulf as regional tensions continued to escalate.

The Iran-aligned group's move opens another front against the United States in the broader conflict involving Iran. It also increases the threat to global oil supplies at a time when shipping disruptions are already affecting markets.

Iran had urged the Houthis to shut the Bab el-Mandeb passage into the Red Sea if US attacks on Iranian power infrastructure continued. A complete closure of the strait would cut global oil supply by 7% because much of Saudi Arabia's oil exports would be unable to leave the region. That would come on top of an existing reduction in oil flows caused by the war in the Gulf, which has already lowered shipments by 10% of global supply.

There was no immediate response from Saudi Arabia.

Diplomatic activity continues

The Houthi announcement came as both Tehran and Washington signalled interest in reviving diplomacy to halt an intensifying exchange of attacks that has nearly destroyed a fragile interim agreement reached last month.

A senior Iranian official told Reuters that mediators had presented Tehran with a proposal for a 10-day ceasefire aimed at preserving that interim arrangement. The deal was meant to lead to a more durable settlement in the war that, began on February 28 with US-Israeli attacks on Iran.

Iran's Foreign Ministry also said mediators had recently submitted proposals to Tehran, an indication that contacts had not stopped. Neither the ministry nor the senior official provided additional details about the possible ceasefire plan.

Oil prices and regional mediation

Earlier on Monday, oil prices briefly rose above $90 a barrel after fresh disruption to shipping in the Strait of Hormuz. Prices later gave up some of those gains after the Iranian Foreign Ministry's remarks suggested diplomatic engagement was still under way.

Separately, two Pakistani government sources said Iran's Interior Minister Eskandar Momeni had asked Pakistan to resume its mediation role in Iran's conflict with the United States. Momeni was making his second visit to Islamabad in less than a week.

The burst of diplomatic contacts followed another night of US bombardment of Iranian cities. After that, Iran's Revolutionary Guards said they had attacked US military assets across the region.