THE Houthi rebels have tightened their grip on a key global shipping route and seized two crucial Red Sea islands.

Fears are mounting the Iranian proxy group’s latest move could spark yet another worldwide oil crisis.

Aftermath of what a Houthi-owned TV network says are strikes on pro-government forces at an unknown location in YemenHouthi rebels have been launching attacks on Saudi and Yemeni positions Credit: Reuters Satellite imagery shows the Saudi Arabia East-West pipeline before and after attackA satellite image shows the damage at the Saudi Arabia East-West pipeline on September 13 Credit: Reuters

Brent crude prices hit $108-a-barrel today, while average US diesel pieces last week soared past $6 a gallon for the first time.

It came after an attack on Saudi Arabia’s East-West Pipeline – a 1,200km pump than goes across the country.

The critical conduit moves crude production from Gulf ports to places like Yanbu on the Red Sea, where it is loaded onto vessels for export.

Riyadh was forced to close down the pipeline due to the attack on Thursday which is believed to have been inflicted by drones.

The damage could take one month to fix, authorities said.

Around 2.6 million to 4 million barrels per day move through the pipeline per day since August.

If it were completely shut down for the long term, the world would “require a major reallocation of global crude flows”, Rystad Energy, a Norway-based research firm said.

Saudi Arabia is bearing the brunt of the rebels’ growing control over the Red Sea – a key route which Riyadh has been using to export its energy following the Strait of Hormuz saga.

The Houthis took the islands of Greater and Lesser Hanish – the latest in a string of key ports and territories seized by the group.

Saudi Arabian oil supplies were also rocked by more Iran-led strikes which reportedly left a supertanker on fire as UK pump prices continued to spiral.

British petrol and diesel prices – which have already leapt by 5p-per-litre over the past week – are set to carry on climbing as the terror state and its comrades cripple supply routes.

Iran’s Navy claimed supertanker Algaya exploded after striking naval mines south of Strait of Hormuz – as US commanders reported the ship had been hit by missiles.

Meanwhile, Iran’s Houthi rebel allies in Yemen tightened their grip on the Bab el Mandeb route to the Suez Canal and sparked missile and drone alerts across Saudi Arabia.

Long term knock-on effects for British householders include higher interest rates and mortgages plus consumer goods hikes as Iran declared war on Western economies.