Yemen's Houthis launch Israel strike, the first time since the U.S.-Israel war began

Yemen's Houthis launched a missile strike against Israel, the group said Saturday. It was the first time the Tehran-backed militia has intervened in the U.S.-Israeli-led war against Iran, which has entered its second month.

"The Yemeni Armed Forces ... have carried out the first military operation using a barrage of ballistic missiles targeting sensitive Israeli military sites," Houthi spokesman Yahya Saree said in a post on X.

Saree said the strike was in support of Iran's regime and Hezbollah forces in Lebanon.

The Israel Defense Forces said they "identified the launch of a missile from Yemen towards Israel," adding that its aerial defenses intercepted the threat.

The move by the Houthis marks an escalation in the conflict, which began with U.S. and Israeli airstrikes against Iranian targets on Feb. 28.

Analysts have told CNBC that the Houthis could attempt to choke off maritime traffic through the Bab el-Mandeb Strait, separating the Arabian Peninsula and the Horn of Africa — through which ships must pass to reach the Red Sea and the Suez Canal — adding to pressure on global trade.

Danish shipping giant Maersk, widely regarded as a barometer of global trade, said earlier in March that the situation in the Middle East had prompted it to pause future trans-Suez sailings through the Bab el-Mandeb Strait until further notice.

The Bab el-Mandeb Strait was estimated to account for 12% of seaborne oil trade and 8% of liquefied natural gas trade in the first half of 2023.

Iranian forces have already effectively shut down the Strait of Hormuz between Iran and the Arabian Peninsula, through which about 20% of the world's oil supplies moved before the war.

Oil prices on Friday closed at their highest level in more than three years, as President Donald Trump's pivot toward negotiations with Iran failed to ease market fears about the huge supply disruption in the Middle East.

West Texas Intermediate crude oil price, one year

U.S. crude oil prices rose 5.46% to close at $99.64 per barrel. International benchmark Brent crude prices gained 4.22% to settle at $112.57. 

Trump's move to give Iran a 10-day extension to open the strategically vital Strait failed to soothe supply concerns. The president said in a social media post on Thursday that talks with Iran were "going very well" despite "erroneous statements to the contrary by the Fake News Media, and others."

As part of the announcement, the U.S. president said he would pause attacks on Iran's energy infrastructure through April 6. Iran has not yet commented on Trump's latest remarks.

This story is developing. Please check back for updates.