The Iran-backed Houthi militant group said it struck two Saudi oil tankers, Encelia and Layla, in the Red Sea, calling the hits a response to vessels violating its new naval blockade. The rebels claimed use of cruise missiles and drones, reporting fires on both ships and warning that any escalation would trigger major operations deep inside Saudi territory.

Oil markets reacted sharply, with Brent crude rising 2% to $95.95 a barrel, extending a 30% climb since early July amid heightened U.S.-Iran tensions. UK maritime authorities confirmed a report of a tanker hit 70 miles off the Saudi coast.

The Bab al-Mandab chokepoint has become crucial for Saudi crude exports to Asia after Iran closed the Strait of Hormuz; the kingdom ships roughly 4.9mn barrels per day via the east‑west pipeline to Yanbu. Analyst Helima Croft at RBC said a sustained Houthi deployment could “materially reduce total Red Sea oil flows” and erode confidence that the market always finds a workaround.