Houthi blockade threatens Saudi oil exports

The conflict between the United States and Iran escalated further as the Houthis in Yemen announced a naval blockade on Saudi Arabia, threatening to attack any ships loading or discharging Saudi oil. Two oil tankers carrying Saudi crude to China and India reversed course in the Red Sea after Houthi threats, heading back toward the Egypt — Suez Canal. U.S. forces continued bombing targets in southern and western Iran, while Iran launched retaliatory strikes against U.S. sites in Bahrain, Kuwait, and Jordan. A tanker in the Strait of Hormuz was struck by a projectile, forcing its crew to abandon ship. Oil prices rose over 2%, with Brent Crude above $91 per barrel and U.S. gasoline over $4 per gallon. The Strait of Hormuz has seen a sharp drop in vessel crossings, and a full closure of the Bab-el-Mandeb could reduce global oil supply by 7%. Diplomatic efforts continue, with Iran reportedly receiving a proposal for a 10-day ceasefire. U.S. Defense Secretary Pete Hegseth requested $70 billion in supplemental funds for the war, which has cost $37.5 billion so far. The conflict has killed thousands, including 50 civilians in recent U.S. strikes on Iran and 18 U.S. service members.