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Markets

Houthi Seizure of Perim Island Threatens Key Trade Route

Published 13 September 2026

Houthi forces have seized Perim Island in the Bab el-Mandeb strait, a critical global trade and oil chokepoint, creating a major new challenge for the Trump administration's strategy in its ongoing war with Iran. The Iran-aligned militants advanced south along Yemen's Red Sea coast, reaching the island on Friday, September 12, 2026, according to multiple reports. This move threatens to disrupt a waterway that carries approximately 7% of global petroleum supplies and 12% of global trade, adding severe economic pressure on Washington at a time when rising U.S. gasoline prices are already a political concern ahead of the November midterm elections. The development complicates President Donald Trump's efforts to find an exit from the seven-month conflict with Iran. His administration had recently adopted a strategy of increasing economic pressure on Tehran while avoiding military escalation that could harm the U.S. economy. Analysts say the Houthi advance has effectively shattered that plan.

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