With the US-Iranian memorandum of understanding having collapsed, hostilities have resumed across the Middle East. Both the United States and Iran have begun targeting each other’s trade in the Strait of Hormuz. However, with this new phase of the conflict underway, it appears Hormuz may not be the only sea lane impacted.
The Iran-backed Houthi military group in Yemen has targeted two Saudi-linked oil tankers in the Red Sea. This came only days after the Houthis announced they would implement a blockade of the Bab el-Mandeb Strait to Saudi Arabian shipping. A Houthi statement confirmed that the tankers MV Encelia and Layla had been targeted by missiles and drones. Further strikes have since been carried out against Saudi oil facilities ashore.
Saudi Arabia has long backed the United Nations-recognised Yemeni Government which remains locked in civil war with the Houthis. Since July 20th, Saudi Arabia has carried out limited strikes inside Yemen.
With tit-for-tat strikes between the US and Iran having continued throughout negotiations, the US resumed full-scale strikes against Iran on the 7th of July. In a post on X, US Central Command, responsible for operations in the Middle East, claimed “The US strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz.”
European countries have avoided offensive strikes against Iran, but have supported defensive operations, shooting down Iranian attack drones. As part of a UK/French-led mission, European warships are on standby in the Arabian Sea to escort shipping through the Strait of Hormuz once a peace deal is secured. Until recently, this included French aircraft carrier Charles de Gaulle, which returned to Toulon earlier this month.
The previous Houthi campaign in the Red Sea began in October 2023 to show solidarity with Palestinians after Israel’s initial attacks on Gaza in response to the October 7th attack. While initially only shooting down Houthi missiles and drones, the US and UK eventually began strikes against Houthi missile launchers, stockpiles and command centres in January the following year. A more aggressive campaign by US President Donald Trump saw a ceasefire deal be achieved between US and Houthi forces in May 2025.
While the first campaign saw the Houthis target shipping fairly indiscriminately, this new blockade specifies Saudi Arabia as the target nation. As Saudi companies have been unable to export oil through the Strait of Hormuz, alternative routes across land to Saudi Arabia’s Red Sea ports have seen increasing use.
By closing the Bab el-Mandeb Strait to Saudi oil, the Houthis are helping Iran maintain economic pressure on Saudi Arabia. Despite having destroyed most of Iran’s conventional air and naval forces, the United States, Israel and partners have been unable to prevent Iran from attacking ships in the Strait of Hormuz. Opening a second front to this conflict places additional pressure on the US military and the defensive capabilities of regional militaries.
US officials have consistently denied Iran and its proxies have posed serious operational challenges during the first five months of Operation Epic Fury, with US Secretary of War Pete Hegseth claiming in early April the war was a “decisive military victory.” So far nineteen American servicemen and a civilian have been killed in the conflict.
President Trump has been negotiating a deal to export nuclear energy technology to Saudi Arabia, which may explain why the Houthis are explicitly targeting Saudi facilities. The President has made it clear that any nuclear deal with Saudi Arabia will require them to first join the Abraham Accords. This document, which normalises relations between Arab states and Israel, was introduced by Trump during his first Presidency. So far only Bahrain and the United Arab Emirates have agreed to the Accords.
How Israel and Saudi Arabia respond to these attacks by the Houthis could make or break any chance of the latter joining the Abraham Accords. It is also yet to be seen what form the US response to the Houthis will be. Whatever is decided, the implications for the future of the Middle East could be huge.