The Iranian-backed Houthi rebels are escalating their threats against Saudi Arabia and the United Arab Emirates. The rebels do not appear intimidated by the Saudi coalition. The Yemeni war is increasingly entangled in the American conflict with Iran, which doesn’t augur well for the Yemenis.
The Zaydi Shiite Houthis attacked Saudi vessels in the Red Sea on July 25. The Houthis claimed that they struck a Saudi warship; the Saudis say it was two oil tankers and announced that they were temporarily halting oil shipments via the Bab el-Mandeb Strait. Their announcement was not followed by others. Oil prices did not jump.