Iran-backed Houthi fighters have grabbed a string of islands controlling the southern entrance to the Red Sea, which is bad news for oil shipping, Saudi Arabia, and anyone who buys fuel.

• The Houthis took Perim Island and other spots guarding the Bab el-Mandeb strait, the second big oil chokepoint after Hormuz.
• Saudi Arabia shut a major oil pipeline after a drone attack from Iraq, leaving a smoke plume visible from space.
• With Iran squeezing Hormuz at the top and its allies holding the bottom, both routes out of the Gulf are now pinched.
• Saudi Crown Prince Mohammed bin Salman asked Trump for military strikes; Trump said no but offered intelligence and targeting help.
• The 2022 truce gave the Houthis years to rebuild into a force of 250,000-plus fighters with new weapons.

Outlook: Expect pressure on oil and diesel prices to build, with a wider American or Gulf military move the main thing that could change the picture.