The Iran-backed Houthis have declared a naval blockade on Saudi Arabia, escalating tensions in the Middle East and threatening global energy supplies.

Despite diplomatic efforts to resume talks, the Houthis' move has triggered a new wave of US strikes on Iran, with the US military targeting Iranian military infrastructure and commercial vessels.Oil prices fluctuated following the announcement, while insurance costs for shipping through the Red Sea rose due to heightened risks.The blockade threatens to cut 7% of global oil supply through the Bab el-Mandeb Strait, compounding existing disruptions from the Gulf war.Saudi Arabia condemned the blockade, vowing to respond with force, while Iran pressed the Houthis to close the critical strait.The conflict has already caused a 10% reduction in global oil shipments, with further economic and geopolitical fallout expected.Diplomatic efforts remain fragile, with mediators proposing a 10-day ceasefire to salvage the interim agreement.

Meanwhile, the US continues its military campaign against Iran, citing the need to protect commercial shipping and retaliate for attacks on American personnel.