The Houthis could tip the Iran war in Tehran's favor
Rapid changes on the ground in Yemen are a serious
setback for Washington's military effort
Sep 18, 2026
https://responsiblestatecraft.org/iran-war-houthis/
The conflict between the United States and Iran has become a contest in enduring economic pain and
the political consequences that may flow from that pain. This has characterized
the conflict since the breakdown of the Memorandum of
Understanding (MoU)
in June that had raised brief hopes that the war would end. Each side appears
confident that it can outlast the other in the pain-endurance contest.
Fundamental change of this situation is unlikely
anytime soon despite some indications Iran is considering military
escalation as a
possible way to break the stalemate. The Trump administration, after the failure of other options, appears to be
hoping that the Iranian regime either will be toppled by an economically
strained Iranian public or will somehow give up and make concessions.
One of the more significant recent developments with
potential for changing this stalemate, however, is renewed military action by
the Houthi regime in Yemen, which includes interdicting shipping traversing the
Red Sea and Bab el-Mandeb Strait. The Houthis constitute a regime and not just
a militia or opposition group. They captured the Yemeni capital of Sanaa in
2014, and for years have been the governing authority over territory that
includes about two-thirds of the Yemeni population. Their principal domestic
opponent, although commonly labeled the “internationally recognized Yemeni
government,” is a weak client of Saudi Arabia, where its leaders spend most of their time.
Earlier Houthi interference with Red Sea shipping was aimed at
Israel and intended as a
gesture of solidarity with the mauled Palestinian population of the Gaza Strip.
This time, the Houthis’ grievance is with Saudi Arabia, and they have declared
a blockade on Saudi shipping.
The background to current Yemeni-Saudi strife is a
multi-year Saudi aerial assault on Yemen that turned the country into a humanitarian
disaster zone
before ending with a truce in 2022. The truce mostly held until this year. But
the past month has seen rapidly escalating exchanges of
fire. Among other
recent attacks
across the Saudi-Yemeni border, the Saudis say the Houthis sent a drone over
Mecca, and the Houthis claim to have shot down a Saudi fighter jet over Yemeni
territory.
The Houthis began attacking Saudi ships in the Red Sea last month, and in the
past two weeks their gains on the ground against their opponents within Yemen
have increased their ability to conduct more such maritime attacks. They
captured the port of Mokha (origin of the coffee-and-chocolate drink) and Perim Island, which is in the middle of Bab el-Mandeb. These
conquests provide bases for further interdiction of shipping in, and just north
of, the strait.
Meanwhile, an attack, evidently by militia in Iraq, on the oil pipeline
spanning the Saudi peninsula has forced the Saudis to shut the line down for
now. The main direct effect of these recent events is a further reduction in
Saudi oil exports. The Saudis had been the world’s biggest oil exporter before
the U.S.-Israeli war against Iran suddenly dropped Saudi exports to a 13-year low of 3.2 million barrels
per day (bpd). The Saudis have relied heavily on the pipeline to the Red Sea as
an alternative to its interrupted exports through the Strait of Hormuz. About 4 million bpd—representing four percent of total worldwide oil consumption—was going through the pipeline at one point during
the war, and the Saudi oil company Aramco says improvements had increased its capacity to 7 million
bpd.
The Saudis hope to repair the damage and put the
pipeline back in operation soon, but the prospect of the Houthis gunning for
tankers carrying Saudi oil through Bab el-Mandeb means their problem of finding
a secure export route will persist. The Saudis could send tankers north toward
the Mediterranean Sea, with the oil traversing either the Suez Canal or a
pipeline in Egypt, but this is the wrong direction to reach most of Saudi
Arabia’s customers, which are in Asia.
Markets have taken note of this predicament. Brent
crude oil futures contracts surged over $100 per barrel and have lingered there.
A major indirect effect of these events is to tip the
balance in the U.S-Iranian endurance contest more in favor of Iran and against
the United States. The principal pain mechanism affecting the Trump
administration is the higher oil price, which means higher gasoline and diesel
fuel prices, more overall inflation, and more dissatisfaction among American
voters. Iranians certainly have been suffering more pain, economic and physical, than Americans have, but for
Iran the stakes also are higher. For the regime in Tehran, the stakes involve
survival, whereas the United States and Trump administration have nothing
remotely comparable at stake.
Further damage to the global economy—with effects felt
within the United States—from the Houthis’ activity may involve disruption of shipping other
than oil. Nine percent of
worldwide maritime shipping traverses the Suez Canal, Red Sea, and
Bab-el-Mandeb. Even though the Houthis say they are aiming their fire only at
Saudi Arabia, the nervousness of shipping companies and insurers about sailing
through a war zone may curtail this activity, as it has with the Strait of
Hormuz.
With the prospect of Tehran crying “uncle” still as
dim as ever, any end to the U.S.-Iran war would require a negotiated agreement.
Like the earlier MoU, it would almost certainly have to be a ceasefire and
skeletal framework that would punt difficult issues to later negotiations. Just
as navigation through the Strait of Hormuz was part of the MoU—with
disagreement over interpretation of that clause being central to the later breakdown of the ceasefire—navigation through Bab el-Mandeb
would likely need to be addressed in any new ceasefire agreement.
Although Bab el-Mandeb and the Red Sea are outside the
main theater of the war in the Persian Gulf, presumably the U.S. side would
insist that this subject be addressed, just as Iran insisted that the earlier
ceasefire extend to Israel’s attacks in Lebanon. This parallel goes farther, in
ways that underscore a difficulty in negotiating a future ceasefire. The United
States does not control Israel’s actions, and Iran does not control the Houthi
regime’s actions. The label of “Iranian proxy” that usually is applied to that
regime is a misnomer. The Houthis have acted against Iranian advice—most
significantly in their capture of Sanaa—and development of their ability to make their own
weapons makes them less
dependent on Iran’s support. The Houthis sympathize with their Iranian allies,
but their chief concerns are closer to home and mostly involve their
confrontation with the Saudis.
The United States does not control Saudi actions,
either, and the kingdom, like Israel, could become a spoiler of any U.S.-Iranian peace.
The parallel ends regarding motivation, however. Although the Israeli
government opposes any peace agreement with Iran, the Saudis presumably
would welcome an end to the war that has been the source of so many of their
current economic and security problems. But with no such end in sight, with a
financial crisis looming from the sharp curtailment of Saudi oil exports, and
with the Trump administration declining so far to take new action against the Houthis, the
Saudis may decide they need to escalate further against the Houthis, making Bab
el-Mandeb and the Red Sea even more of war zone than before.
This scenario, besides complicating any diplomacy
aimed at ending the U.S.-Iranian war, would further demonstrate the prescience
of those who warned that a U.S. military attack on Iran would spread into a
wider Middle East conflagration. The Iran war has triggered new violent
phases of old conflicts such as Israel-Lebanon and Yemen-Saudi Arabia, which
then escalate further according to their own destructive logic.