A Major Ground Offensive In The Middle East Just Caused A Dramatic Surge In The Price Of Oil

We just witnessed one of the biggest military developments in the Middle East in months. It is being reported that a major ground offensive by the Houthis has enabled them to take control of the port city of Mocha right on the coast of the Red Sea, Zuqar Island and the rest of the Hanish island chain, and Mayun Island which is located in the Bab el-Mandeb Strait at the south entrance into the Red Sea. This is being called a “strategic disaster” for the United States and Saudi Arabia, because it will give the Houthis an iron grip on the Bab el-Mandeb Strait. Needless to say, investors were spooked by this news. Yesterday we were talking about how Brent crude had suddenly risen to $100 a barrel, but today it shot up to $107 a barrel. West Texas crude is up to $102 a barrel, and that is really freaking people out. Unfortunately, there is no end in sight for this crisis.

So much has changed within the past 24 hours.

The Houthis have successfully captured the most important Yemeni port city on the coast of the Red Sea…

Iran-aligned Houthi forces took control of the Yemeni Red Sea port city of Mocha, less than 50 miles from the Bab el-Mandeb Strait, after government forces retreated from the area overnight, despite making advances in Yemen’s desert interior. This comes despite Saudi-backed Yemeni forces announcing Wednesday that they had made significant gains in the north and central desert areas and appeared to have broken through Houthi lines.

In reality, the Houthis had simply repositioned, giving up open desert territory in order to seize the more strategically valuable western coastline. By Thursday morning, the group had taken Mocha after government forces retreated en masse, effectively swapping territory with Saudi-backed forces in a trade that leaves the Houthis with a more direct ability to threaten shipping in the Bab el-Mandeb Strait and increase pressure on Saudi Arabia.

This was a brilliant strategic move by the Houthis.

One former Yemeni official is claiming that outside intervention would be required to turn things around at this point…

A former Yemeni military official told i24NEWS that the government’s boasting about desert gains was “actually a cover for their losses on the coastline.” “It’s really bad,” he said, adding that the only way to turn the tide is for Saudi Arabia to get more involved and activate the Mecca Accord, bringing Turkey and Pakistan into the fight.

In addition to conquering Mocha, the Houthis also took control of a number of strategically important islands located in the southern portion of the Red Sea…

Two military sources in the Yemeni government told Reuters that the Houthis have reached the Hanish Islands in the Red Sea, and AFP reported they seized Zuqar Island. Additionally, local sources confirmed to the Qatari Al-Araby channel that the Houthis took control of the strategic island of Mayun in the Bab el-Mandeb Strait.

Up to now, the Houthis have been lobbing missiles at Saudi tankers from a long distance.

That has been effective, but controlling these islands will allow them to fire at Saudi tankers from very close range.

That is why this is being called a “strategic disaster” for the United States and Saudi Arabia…

Seizure of the coast and some of the islands in the sea would be a strategic disaster for Saudi Arabia and the US, taking Iran and its proxies closer to full control of two choke points for western shipping on opposite sides of the Arabian peninsula: the Bab al-Mandab at the southern end of the Red Sea and the strait of Hormuz in the Gulf.

Observers have said a reduction in hostilities – the most intense since the UN-sponsored ceasefire of April 2022 put an end to major military exchanges – now seems unlikely in what is seen as an attempt by the Houthis to open a second front in the Iran-US war, alongside the battle for control of Hormuz.

Commercial traffic through the Strait of Hormuz has been almost completely choked off.

Now the Houthis are in position to strangle commercial traffic through the Bab el-Mandeb Strait as well…

It is one of the world’s most important routes for crude oil and fuel from the Gulf bound for the Mediterranean via the Suez Canal, or the Suez-Mediterranean pipeline on Egypt’s Red Sea coast, as well as commodities bound for Asia, including Russian oil.

Blocking the narrow passage would isolate Gulf oil-producing countries, such as energy superpower Saudi Arabia, from their main shipping routes, after Iran effectively closed the Strait of Hormuz — the primary maritime energy artery between Asia and Europe.

The war in the Middle East just got a lot more serious, and on Thursday the price of oil really spiked…

U.S. crude oil prices surged past $100 per barrel on Thursday, the highest level in more than three months as fighting has sharply escalated between Washington and Tehran this week.

West Texas Intermediate futures gained 6.7% to close at $102.48 per barrel. Brent crude, the international benchmark, last traded about 6% higher to $107.21 per barrel.

Oil prices have advanced more than 18% in September as the market braces for a prolonged war in the Middle East.

If we don’t witness some sort of a diplomatic miracle, things could get a lot worse.

Goldman Sachs is warning that the price of oil could potentially hit $120 a barrel, and Bank of America is claiming that it could actually reach $150 a barrel in a worst case scenario…

Then there’s Goldman Sachs, which raised its 2027 forecast to $80, while also flagging a worst-case scenario of $120 oil where Gulf output remains suppressed.

Not to be outdone, Bank of America said continued Middle East conflict could put oil in a $95-to-$120 range, with $150 a possibility if energy infrastructure is damaged further.

We are in far more trouble than most people realize.

The Iranians truly believe that they now have the upper hand, and they are openly mocking us…

Over the past couple of months, the Iranians have been responding to our attacks.

But now the IRGC is warning that Iran is “on the threshold of offensive operations”…

The top Revolutionary Guards commander in Tehran said Iran had moved beyond defensive operations and was now “on the threshold of offensive operations.”

“This is a turning point whose effects the enemies will soon understand,” Hassan Hassanzadeh said.

What kind of “offensive operations” do they have in mind?

We are also being told that Iran has been steadily producing new weapons and that we will soon “see a glimpse of the tip of this iceberg”…

Iran’s defense industry remains operational and has become “stronger, smarter and more advanced than before,” the Defense Ministry said on Thursday, rejecting suggestions that the sector could be destroyed.

“You will soon see a glimpse of the tip of this iceberg,” the ministry added, without providing details.

I do believe that the Iranians have some surprises up their sleeves.

But so does Israel.

I am expecting to see some major escalations.

Of course that would be really bad news for the global economy.

The price of oil has smashed through the psychologically important $100 barrier, and if it keeps going higher it is inevitable that we will witness an enormous wave of panic in the financial markets.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com.  He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

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