Houthis declare naval blockade against Saudi Arabia, raising Middle East tensions

• Yemen's Houthis declare a naval blockade against Saudi Arabia in an official statement.
• The Iran-aligned group describes the measure as a maritime embargo against Saudi Arabia.
• Markets are monitoring the risk of further regional escalation and potential disruptions to energy trade.

Yemen's Houthis announced on Monday a naval blockade against Saudi Arabia, according to a statement reported by Reuters. The group's military spokesperson said the measure takes effect immediately, describing it as a maritime embargo against Saudi Arabia, although no further details were provided on how it would be enforced.

West Texas Intermediate (WTI) US Oil reacted higher to the headlines, rebounding from daily lows below $80 to trade around $81.35 at the time of writing. The commodity has recovered part of Monday's losses but remains down 0.48% on the day.