Brent Oil Breaks $105: Which European Energy Stocks May Benefit from Houthi Conflict

Brent oil reached prices of up to $109 per barrel on September 11, 2026, after Iran-backed Houthi rebels captured the strategically important 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 September 10, as The National reported citing market data at 16:45 local time (UAE).

On September 11 at 09:00 GMT, the front-month contract for ICE Brent was trading at $104.09 per barrel with a daily gain of $1.79, according to Energy Connects. Other sources reported prices approaching the $109 mark. This put oil prices on track for the first weekly close above $100 since mid-May 2026.

Mokha Capture Threatens Critical Trade Route

Houthi rebels captured Mokha following intense overnight clashes on September 9 and 10, as confirmed to the Associated Press by Ahmed Baash, commander of the National Resistance Forces, and Hazam al-Assad, a member of the Houthi political bureau. Mokha residents told the BBC that Houthi fighters entered the city after the overnight fighting, prompting numerous families to flee their homes. Three doctors fled a hospital in Mokha after its capture.

The capture represents the largest territorial gain for the Houthis since the 2022 ceasefire, which paused a civil war that had lasted more than a decade. Mokha had previously been held for a long time by government-loyal forces.

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 boat-based ground assault. Military sources told Reuters that the Houthis advanced along the Red Sea coast toward the Hanish Islands.

Two Straits Threatened Simultaneously

Mokha lies approximately 75 kilometers north of the Strait of Bab al-Mandeb, which connects the Red Sea with the Gulf of Aden. This only 20-kilometer-wide passage carries between 10 and 12 percent of global oil shipments 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 blockaded since the start of the US-Iran war on February 28, 2026. Daily shipping traffic through the Strait of Hormuz has declined sharply compared to more than 100 vessels before the conflict began. Traffic through Bab al-Mandeb has also decreased since tensions escalated.

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

Historical Context of Oil Prices

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

The Houthis had previously declared a "maritime blockade" against Saudi Arabia and attacked ships transiting the Bab al-Mandeb channel. Saudi Arabia has responded to Houthi attacks by rerouting its oil shipments via the Mediterranean.

Impact on Consumers and Markets

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

Brent oil serves as the benchmark for two-thirds of global oil. The ongoing geopolitical tensions – the US-Iran war began on February 28, 2026, and both nations have intensified their attacks on tankers in recent days (as of mid-September) – are heightening concerns about oil supply.

European Energy Stocks in Focus

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

European refinery operators and tanker shipping companies are also likely to be affected by the changed trading dynamics. Longer transport routes and higher freight rates resulting from detours around the blockaded straits could increase revenues for tanker operators.

However, there is no current market data or analyst estimates documenting specific price movements or valuations of European energy stocks in connection with the Mokha capture. Investors should note that higher oil prices simultaneously carry the risk of dampened demand and tightened monetary policy measures, which could limit profit growth in the energy sector.