According to reports, Houthis have advanced to a vital Red Sea island, endangering an important oil choke point.

According to reports, the Iran-backed Houthis moved closer to Yemen’s vital Perim Island on Friday, giving the terrorist organization a significant boost in its efforts to seize control of one of the most significant shipping choke points in the world.

Only one day after the Houthis took control of Yemen’s port city of Mokha on the Red Sea coast, many news outlets reported the conquest of Perim Island, citing numerous Yemeni government sources. The swift ground invasion is viewed as a serious blow to Saudi Arabia and the Yemeni forces it supports, and it puts Iran and its allies in a position to control the Bab el-Mandeb Strait and the Strait of Hormuz, two crucial oil choke points on each side of the Arabian Peninsula.

The Bab el-Mandeb Strait, a waterway that links the Red Sea to the Gulf of Aden and to international markets, is divided by the small, rocky island of Perim. Global trade may be significantly impacted by the Houthis’ push toward the Bab el-Mandeb Strait, especially if the rebel group increases its threats or attacks on Red Sea vessels.

According to Hamish Kinnear, principal Middle East and North Africa analyst at risk intelligence firm Verisk Maplecroft, the conquest of Mokha was a “major blow” to Saudi Arabia since it increases the likelihood that the group will tighten its hold on the Bab el-Mandeb Strait.

Yemen’s port city of Mokha is situated about 75 kilometers (46 miles) north of the Bab el-Mandeb Strait. “The Houthis were already threatening Saudi shipping from previous positions, but their capture of Mocha opens up the possibility of further advances towards the Bab el-Mandeb coastline and a tighter grip on the chokepoint,” Kinnear said in a research note.

As the war continues, Kinnear said both Tehran and Washington believe time is on their side, making a new truce unlikely for now. “Oil and gas prices, and more specifically refined products such as diesel, will continue to tick upwards while that remains the case – even if US convoys and Strait of Hormuz export alternatives cushion the price impact,” Kinnear said.

Despite Friday’s dramatic decline in oil prices, both main benchmarks could close the week above $100 per barrel for the first time since mid-May. U.S. West Texas Intermediate futures with an October expiration date were last spotted 3.4% lower at $99.08, while international benchmark Brent oil futures with a November expiration date traded 3.3% lower at $104.21 per barrel.

According to ING strategists, the oil market’s resilience is being put to the test by a greater awareness of the growing threat to regional supply, with participants in the energy market being observed to reprice both the length and intensity of the conflict. ING’s analysts stated that flows through the Strait of Hormuz are still well below pre-war levels, highlighting how precarious the situation has become.