Brent Oil Above $105: What the Houthi Advance Means for European Energy Stocks

Brent oil reached prices of up to $109 per barrel on 11 September 2026, after Iran-backed Houthi rebels captured the strategic Yemeni port of Mokha on the Red Sea the day before. The price had already risen 4.12 percent to $105.4 per barrel on 10 September, according to The National citing market data at 16:45 local time (UAE).

On 11 September at 09:00 GMT, the front-month contract for ICE Brent traded at $104.09 per barrel with a daily gain of $1.79, as Energy Connects reported. Other market reports cited prices near $109 for the same day. The sources thus diverge; what is certain is trading well above the $100 mark. Oil prices were thus heading towards the first weekly close above $100 since mid-May 2026.

Mokha capture threatens critical trade route

The Houthi rebels took Mokha after fierce overnight fighting on 9 and 10 September, as confirmed to the Associated Press by Ahmed Baash, commander of the National Resistance Forces, and Hazam al-Assad, member of the Houthis' political bureau. Residents of Mokha told the BBC that Houthi fighters moved into the city after the overnight clashes, whereupon numerous families left their homes. Three doctors fled a hospital in Mokha following its capture.

The capture represents the largest territorial gain for the Houthis since the 2022 ceasefire, which paused the civil war ongoing since 2014. Mokha had previously been held by government-aligned forces for a long time.

According to a Yemeni military source to AFP, Houthi fighters also captured the island of Zuqar in the Red Sea following a rocket barrage and a boat-based ground assault. Military sources told Reuters that the Houthis advanced along the Red Sea coast towards the Hanish Islands.

Two straits threatened simultaneously

Mokha lies approximately 75 kilometres north of the Strait of Bab al-Mandeb, which connects the Red Sea to the Gulf of Aden. This passage, roughly 30 kilometres wide at its narrowest point, transports between 10 and 12 percent of global oil supplies and is particularly important for Saudi Arabia, the largest OPEC producer, whose oil exports to Asia flow mainly through this channel.

The threat to the Strait of Bab al-Mandeb exacerbates an already strained supply situation. The Strait of Hormuz has remained effectively blocked since the start of the US-Iran war on 28 February 2026. Daily shipping traffic through the Strait of Hormuz has declined significantly compared to more than 100 vessels before the conflict began. Fewer ships are also transiting Bab al-Mandeb since tensions have escalated.

Sasha Foss, energy analyst at CSC Commodities (a division of Marex), told The National: "The advance of the Houthi rebels, who are capturing important strategic locations like Mokha and the island of Mayun in the Strait of Bab al-Mandeb, is putting fear into the oil market. It threatens flows in and out of the Red Sea at a time when the Strait of Hormuz is already partially blocked."

Historical context of oil prices

Oil benchmarks had reached an intraday high of $126 per barrel in late April 2026 following US and Israeli strikes on Iran and Tehran's subsequent attacks on Gulf neighbours and Iraq. In the following months, prices declined after peace talks, but rose again as military clashes between the US and Iran increased.

The Houthis had previously declared a "maritime blockade" against Saudi Arabia and attacked ships transiting the Bab al-Mandeb channel. Saudi Arabia has diverted its oil shipments across the Mediterranean in response to Houthi attacks.

Impact on consumers and markets

The US average price for diesel exceeded the $6 per gallon mark for the first time on 11 September 2026, according to price-tracking data cited by the Daily Mail.

Brent oil serves as the price benchmark for around two-thirds of internationally traded crude oil. Ongoing geopolitical tensions – the US-Iran war began on 28 February 2026, and both nations have intensified attacks on tankers in recent days (as of mid-September) – heighten concerns about oil supply.

European energy stocks in focus

Higher oil prices typically strengthen the margins of integrated oil majors – companies active in both extraction and refining. European majors such as Shell, BP, TotalEnergies and Equinor could benefit from an extended period of high oil prices, as their upstream operations – the extraction of oil and gas – directly profit from higher crude oil prices.

European refinery operators and tanker shipping companies are also likely to be affected by the altered trade dynamics. Longer transport routes and higher freight rates resulting from circumventing blocked straits can increase revenues for tanker operators.

Reliable price data or analyst estimates directly linking individual European energy stocks to the capture of Mokha are not yet available – the companies mentioned are exemplary for the affected business models and are not a recommendation. Investors should also note that higher oil prices simultaneously carry the risk of dampened demand and tighter monetary measures, which could limit energy sector profits.

Important notice

This article is for informational purposes and does not constitute investment advice. Prices and situation assessments mentioned refer to the stated date and can change very rapidly in an ongoing crisis. Investment decisions are made at your own responsibility.