Houthi Militia's Official Entry Escalates Iran War Crisis... Global Oil and Commodity Prices Surge

International oil prices have surpassed the $115-per-barrel mark, and prices of key minerals such as aluminum have soared. The war is intensifying as the Iran-backed Houthi rebel group in Yemen has officially declared its participation in the war. As the Houthis threaten the Bab-el-Mandeb Strait, a key chokepoint in the Red Sea, global energy and commodity markets are facing yet another crisis.

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According to energy specialist media outlet OilPrice.com, as of 7:44 p.m. Central Daylight Time (CDT) on March 29, Brent crude was trading at $115.61 per barrel, up 2.70% from the previous session.

West Texas Intermediate (WTI) crude in the United States recorded a 2.42% increase, reaching $102.05 per barrel.

Bloomberg reported, "With the Houthi rebels joining the Middle East conflict, the market is adjusting its initial volatility range." The report continued, "Amid concerns that attacks on production facilities in the Middle East could further disrupt supply, Brent crude rose 2%, while S&P 500 futures fell 0.4%."

Beyond oil prices, aluminum prices on the London Metal Exchange (LME) rose 5% on this day, and shares of aluminum-related stocks on the Australian stock market also surged across the board. Alcoa soared 11%, while South32 climbed 6.7%.

Bloomberg also stated, "Commodity prices are reacting sensitively to war-related news that broke over the weekend, showing repeated volatility patterns." The report added, "With supply risks mounting, crude oil and aluminum prices remain strong, but copper, which is highly sensitive to economic fluctuations, is on a downward trend." It continued, "Gold and silver prices, under pressure from a stronger dollar, recorded early-session declines."

The Houthi rebels in Yemen, considered Iran's "proxy forces," fired missiles toward Israel at dawn on March 28 (local time). This was the first military action taken by the Houthis since the outbreak of the war.

With the prolonged blockade of the Strait of Hormuz, concerns have been raised that the Houthis' involvement could also threaten navigation in the Red Sea. The Bab-el-Mandeb Strait at the entrance to the Red Sea is a key route through which 10% of the world's seaborne oil trade passes. It is also a critical passage for oil from the Gulf region to Europe via the Suez Canal.

After the outbreak of the Gaza war in 2023, the Houthis, under the pretext of supporting Palestinian Hamas, attacked commercial vessels passing through the Bab-el-Mandeb Strait dozens of times.

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