Enterprise & Industry

Iran threatens Bab el-Mandeb Strait closure after Hormuz shutdown

⚑Iran's IRGC vows to block Red Sea gateway, risking $200 oil

Deep Dive

Iran’s Islamic Revolutionary Guard Corps (IRGC) has escalated its confrontation with the US by threatening to close additional vital seaways, following the closure of the Strait of Hormuz and the US reimposition of a naval blockade on Iranian ports. The IRGC stated via Iran's IRNA news agency that 'regional energy exports are either shared by all, or denied to all.' Analysts believe Iran will use its Houthi allies in Yemen to shut the Bab el-Mandeb Strait, the narrow gateway linking the Red Sea to the Gulf of Aden, through which Saudi oil exports and a significant portion of global shipping pass.

A senior Houthi official warned on Monday that the group is prepared to close the strait, potentially sending oil prices soaring to $200 per barrel if Saudi Arabia continues its military campaign in Yemen. This threat comes after Houthi forces fired missiles at Saudi Arabia in response to an alleged bombing of a Houthi-controlled airport, breaking a four-year truce. The combined closure of two major energy arteries could severely disrupt global oil supplies and shipping, escalating economic and geopolitical tensions in the Middle East.

Key Points
  • IRGC threatens to close all export corridors benefiting the US after shutting Strait of Hormuz and facing US blockade
  • Houthi allies in Yemen warned they could close Bab el-Mandeb Strait, sending oil to $200/barrel
  • Houthi missile attacks on Saudi Arabia break a four-year truce, escalating regional conflict

Why It Matters

Potential disruption of two global oil chokepoints threatens energy markets and global shipping stability.

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