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strikeAug 25, 2026

Houthi strikes threaten to pull Yemen into Middle East war

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Houthi strikes threaten to pull Yemen into Middle East warAugust 25, 2026 Yemen is increasingly at risk of backsliding into full-scale conflict. On Monday, Yemen's Iran-backed Houthi militia attacked another crude oil tanker in the Red Sea off the coast of Saudi Arabia. The attack followed earlier strikes on Saudi oil infrastructure and other ships in the nearby Bab el-Mandeb Strait. The waterway connects the Red Sea with the Gulf of Aden and has served as an alternative route for oil exports from Saudi Arabia and other Gulf countries affected by Iran's ongoing blockade of the Strait of Hormuz. In August, the Houthis also attacked areas under the control of the Saudi-backed Yemeni government, particularly the port city of Mokha. Yemen's internationally recognized government targeted Houthi infrastructure in response. "Mokha overlooks the Red Sea and Bab el-Mandeb Strait, which is strategically important to the Houthis," Hisham Al-Omeisy, a Yemeni conflict analyst, told DW. "In the long term, the Houthis want to weaken the government's control over the Red Sea coastal areas and they aim for full control of the governate Al-Hudeydah [of which Mokha is a part] to continue their strategy of exerting pressure on global maritime trade," he predicted. The current military flare-up ended four years of relative calm between the Houthis and Yemen's internationally recognized government, backed by Saudi Arabia. However, Al-Omeisy notes that there are also two other aspects that drive the latest Houthi strategy. Following the ceasefire in 2022, Saudi Arabia has continued to support the Yemeni government financially and militarily. Saudi Arabia also never fully lifted its air and port blockades in areas under Houthi control. Despite this, the Houthis consolidated their position as Yemen's de facto rulers. In Al-Omeisy's view, the Houthis now hope to extract additional concessions from Saudi Arabia. "The Houthis are under a lot of pressure locally to deliver on their promises, for example, to reform the government, pay salaries and improve livelihoods," Al-Omeisy said. He therefore believes that the Houthis are using the wider Middle East war to distract from their failure to deliver in these areas by "saying that we are now busy with another war." The Houthi strikes are also carefully timed, Al-Omeisy added. "They've learned their lessons from how Iran managed to basically dominate the Strait of Hormuz," he said, adding that the blockade of imports and oil exports leaves Saudi Arabia in a very vulnerable position. Saudi Arabia's balancing act with the Houthi militia "Instability in Yemen is no longer simply a problem on Saudi Arabia's southern border," Alice Gower, director of geopolitics and security at the London-based consulting firm Azure Strategy, told DW. "Ultimately, Saudi Arabia wants a more secure Red Sea, but also wants to achieve that without becoming trapped in another war in Yemen," she added. "Saudi Arabia's priority is protecting the economic transformation under Vision 2030 which also explains why Saudi Arabia increasingly sees the Red Sea as one connected theater rather than separate crises in Yemen, Sudan and the Horn of Africa," Gower said, noting that Houthi attacks threaten shipping, raise insurance costs, deter investors and disrupt the infrastructure on which Vision 2030 increasingly depends. In turn, Saudi Arabia has updated its defense policy, she also noted in a recent op-ed. "Riyadh has been focusing on building a broader security architecture that could reduce the burden of defending its maritime interests." Earlier in July, Saudi Arabia spearheaded the creation of a multinational Maritime Defense Alliance with more than 14 countries, including Saudi Arabia's strong ally and Iran's adversary, the United States. "The new Saudi-led maritime coalition is part of that approach as it allows Riyadh to spread the security burden, strengthen regional deterrence and counter threats across the Bab el-Mandeb, Red Sea and Gulf of Aden as part of the same security problem," Gower said, adding that it is yet to be proven to be effective. In August, Saudi Arabia also joined a defense pact with Pakistan and Turkey, the Mecca Joint Defence Agreement. However, analysts again point out that this new pact is yet to show "operational relevance." For Mohammed al-Basha, founder of the US-based risk advisory firm Basha Report, none of these coalitions and alliances will actually help Saudi Arabia avoid being dragged back into war in Yemen. In an interview with the Financial Times newspaper he said that "they either give the Houthis $5 billion and allow them to fly directly to Tehran, allow them to dock any ship at their ports, and hope they are not going to come back in a few years and ask for $10 billion…or you use that $5 billion to support your anti-Houthi coalition of Yemenis to push the Houthis to get down from their high horse and negotiate." Humanitarian situation depends on a peaceful roadmap For the population, neither of these scenarios spell hope for real peace. According to the United Nations, Yemen is still suffering from one of the world's worst humanitarian crises after years of war between 2014 and 2022. More than half the population is in need of humanitarian assistance. "I urge all parties to halt immediately any actions that risk returning Yemen to full-scale conflict," the UN high commissioner for human rights Volker Türk warned in a recent statement. "It feels impossible to imagine worse conditions for people in Yemen right now," Niku Jafarnia, Yemen researcher at Human Rights Watch, told DW. "And yet, renewed conflict between the Houthis and the Saudi-led coalition threatens to worsen conditions further," she warned. With Yemen's humanitarian crisis already so severe, the question is whether the latest escalation in Yemen can still be contained through diplomacy. For the Yemeni Nobel Peace Prize laureate and human rights defender Tawakkol Karman, any serious peace effort must begin by addressing the root cause of the crisis: the collapse of the Yemeni state and the undermining of its institutions. In a recent meeting with representatives of UN Security Council member states, Karman said that in her view, the National Dialogue outcomes — reached through consensus among all Yemeni components including the Houthis, under UN auspices and with the endorsement of the Security Council — remain the most realistic roadmap for peace.

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  • Jennifer HolleisBy Jennifer Holleis

    Houthi strikes threaten to pull Yemen into Middle East warAugust 25, 2026 Yemen is increasingly at risk of backsliding into full-scale conflict. On Monday, Yemen's Iran-backed Houthi militia attacked another crude oil tanker in the Red Sea off the coast of Saudi Arabia. The attac

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European shares gain on softer US Iran sanctions, falling oil prices The healthcare sector advanced the most - The Stoxx 600 closed 0.35 per cent higher at 656.48 points on Tuesday. PHOTO: REUTERS EUROPEAN shares rose on Tuesday (Aug 25) as investors took comfort from a softer-than-feared US sanctions package on Iran and falling oil prices, with gains in heavyweight industrials and healthcare stocks lifting the benchmark.

US Treasury Secretary Scott Bessent’s fresh measures to stifle Iran economically had limited impact on markets, as Washington stopped short of imposing any penalties on Teheran’s trading partners. Iran promised to retaliate against the expanded US sanctions and said it was confident major trading partners would resist Washington’s pressure campaign.

The pan-European Stoxx 600 closed 0.35 per cent higher at 656.48 points, just 0.6 per cent away from its record high hit earlier this month. The healthcare sector led gains with a 1.2 per cent rise. Novo Nordisk advanced 2.9 per cent after JPMorgan raised its price target for the Danish obesity drug maker, citing increased long-term sales forecasts.

Peer Zealand Pharma climbed 5.6 per cent. Industrials advanced 1.1 per cent, rising the most in three weeks as Melrose Industries climbed 10.4 per cent after the British aerospace components supplier gave a timeline for resuming full production at GKN Aerospace.

Production was halted in late May at a suburban Los Angeles plant after an overheating tank raised fears of an explosion. Defence and aerospace shares also edged 0.9 per cent higher as a result. Investors also assessed signs of a turnaround in Germany’s economy, as gross domestic product grew faster than expected in the second quarter and business morale hit its highest level in a year in August.

“While it’s still too early to call this a self-sustained economic recovery, growth above potential in the first and second quarters of the year, together with four consecutive months of increasing sentiment, are promising,” said Carsten Brzeski, global head of macro at ING.

Brzeski warned however that elevated oil prices, a likely upcoming shock from higher gas prices in the next heating season and renewed trade tensions pose risks to the German outlook. Crude prices fell 3.5 per cent as traders saw little immediate threat to global crude supplies from the latest US measures.

Federal Reserve Chair Kevin Warsh’s Jackson Hole debut later this week is in focus for clues on rising bond yields and central bank independence. Limiting the gains on the benchmark, luxury stocks fell 1.2 per cent as Gucci parent Kering slipped 3.3 per cent.

The tech sector rose 0.2 per cent ahead of Nvidia’s results on Wednesday, amid concerns the chipmaker may struggle to meet lofty expectations. European software and data stocks ended lower as Alphabet’s Google announced its Gemini Enterprise tool for lawyers and law firms.

French corporate services firm Capgemini and Amsterdam-listed software maker Wolters Kluwer fell the most, by 1.8 per cent and 3.1 per cent, respectively. REUTERS Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter.

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Location: Iran
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Secretary of State Marco Rubio has told several of his foreign counterparts in recent days that "for the time being" the U.S. is not expected to initiate new strikes against Iran, according to a U.S. official and a second source with knowledge of the matter.

Instead, he's said the focus is on other means of pressure, including the sanctions initiative announced this week. Why it matters: Rubio's message to foreign ministers from several allied countries comes as the U.S. believes it's suffocating Iran with the naval blockade — while moving ever-increasing amounts of oil out of the Strait of Hormuz.

It's also another sign that President Trump is exasperated with the war and wants it to be over, at least for now. The U.S. official said that while Rubio made clear that the U.S. isn't planning a return to major combat operations, he didn't rule out strikes if Iran attacks first.

Another U.S. official said the clearing of mines from the Strait of Hormuz by the U.S. Navy is a watershed moment in the war, largely neutralizing one of Iran's main sources of leverage. Behind the scenes: The sources said Rubiooutlined the Trump administration's current Iran policy in phone calls with several of his counterparts: Avoiding military action against Iran for the time being.

Transporting as much oil as possible through the strait and into global energy markets. A second U.S. official said this is expected to be the policy at least until after the midterm elections, when a new military campaign could again be on the table.

State of play: U.S. officials say the clearing of mines from most of the Strait of Hormuz, coupled with the fact that more and more tankers have been moving through the southern lane of the strait in recent weeks, significantly reduces Iran's leverage over global energy markets.

"The Iranians have lost control over the strait. Now the U.S. controls it," one U.S. official said. The U.S. naval blockade is depriving Iran of critical revenue. Over the last two weeks, almost no tankers have been spotted at Kharg Island, Iran's main oil export hub, U.

S. officials say. "The Iranian economy is in free fall and the regime's military has been decimated," State Department spokesman Tommy Pigott told Axios, "and we are cutting off every financial lifeline the regime has remaining." He added, "The President has been clear that Iran cannot have a nuclear weapon, and that he will use the tools necessary to ensure that objective is accomplished.

" The big picture: Pakistan's army chief, Field Marshal Asim Munir, was in Tehran on Sunday for talks with the Iranian leadership. Pakistan has been a key mediator between the U.S. and Iran since the war began. According to Al Arabiya, the Saudi-affiliated TV station, Munir spoke to Trump before the trip and suggested a new proposal for the Iranians.

The White House didn't deny that Trump spoke to Munir but said there are no current or scheduled negotiations with Iran. U.S. officials say that the new developments in the strait and the growing volume of oil coming out of the Gulf have deprived Iran of a major card in any future negotiations and made any potential deal between Oman and Iran regarding the strait irrelevant.

"Right now we are not negotiating with Iran. We are squeezing them. The pressure could drive the Iranians back to the table," a U.S. official said. What to watch: White House envoys Steve Witkoff and Jared Kushner, who have been leading the negotiations with Iran, are expected to visit U.

S. Central Command on Wednesday for briefings on the situation on the ground, according to a source with knowledge.

Location: Iran