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Analysis

With rial in free fall, Trump’s warning to Iran over Houthis poses strategic dilemma

Iran is once again facing the difficult prospect of distancing itself from another regional proxy ally after the US president's warning suggested possible direct US attacks on the Islamic Republic.

A man pays using Iranian rials at a shop, in Tehran on July 31, 2019. - The government in sanctions-hit Iran on Wednesday approved a plan to remove zeros from the rial and rename the currency -- something its people have long been doing to simplify transactions. (Photo by ATTA KENARE / AFP) (Photo by ATTA KENARE/AFP via Getty Images)
A man pays using Iranian rials at a shop, in Tehran on July 31, 2019. — ATTA KENARE/AFP via Getty Images

TEHRAN — A recent wave of deadly US strikes on Yemen, targeting military installations of the Iran-backed Houthi rebels, has unsettled Iranian authorities after the Trump administration warned it will hold the Iranian government accountable for the group's disruption of international maritime traffic in the Red Sea. 

The attacks followed what the US president described as "decisive military action" in response to the Houthis' threats against Israeli-linked vessels, which the group says are in solidarity with the Palestinians in Gaza.

In a post on his Truth Social account on Monday, Trump said Tehran's continued support for the Houthis would come with consequences, "and those consequences will be dire," as the United States views "every shot" from the Houthis as an attack from Iran. US Defense Secretary Pete Hegseth also put Iran "on notice," saying Houthi attacks on US forces would not be tolerated. 

Reacting to American authorities, Maj. Gen. Hossein Salami, the commander of the Islamic Revolutionary Guards Corps (IRGC), dismissed accusations of Iranian support. He stressed that the Houthis operate "independently," making strategic decisions on their own. Salami also warned that threats against Iran would be responded to with severe force. 

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