Yemen’s Iran-backed Houthi movement has announced a naval blockade on Saudi Arabia, opening a new front in the escalating conflict between Iran and the United States and heightening concerns over global energy supplies and maritime trade.

The Houthis said the blockade, which takes immediate effect, targets Saudi shipping in response to what they described as an “unjust and oppressive siege” on Yemen. In response, the Saudi-led coalition vowed to retaliate and said it had begun implementing measures to protect vessels transiting the strategic Bab el-Mandeb Strait.

The development comes as diplomatic efforts continue to seek a ceasefire between Iran and the United States. Iranian officials confirmed receiving proposals from mediators, while Pakistan was reported to have resumed mediation efforts.

Oil prices briefly rose following the Houthi announcement before easing on hopes of a diplomatic breakthrough. However, shipping insurance costs in the Red Sea increased amid growing security concerns.

Meanwhile, the conflict intensified with fresh U.S. strikes on Iranian targets and retaliatory attacks by Iran on American military assets in the region. The Pentagon confirmed the deaths of three U.S. service members in recent Iranian attacks, while President Donald Trump vowed a strong military response.

Analysts warn that any disruption to the Bab el-Mandeb Strait could significantly impact global oil supplies, compounding existing disruptions caused by the ongoing regional conflict.