US-Iran Conflict Could Have Devastating Economic Impact on Yemen

March 27, 2026 • Al Jazeera

US-Iran Conflict Could Have Devastating Economic Impact on Yemen

Iran-Backed Houthi Rebels Remain Neutral in Conflict

In Yemen’s capital city, Sanaa, concerns are growing about the potential involvement of Iran-backed Houthi rebels in the ongoing conflict. Despite their past demonstrations of capabilities by attacking shipping in the Red Sea for two years following Israel’s war on Gaza, the Houthis have so far refrained from participating in the current conflict.

According to a recent statement by Houthi chief Abdel-Malik al-Houthi, his group is prepared to take action at the right moment. An Iranian military official has warned that any US aggression against Iran’s oil facilities could lead to Tehran destabilizing the Red Sea and Bab al-Mandeb Strait, a vital maritime chokepoint.

Analysts predict that if the Houthis were to join the conflict in support of Iran, they would focus on attacking energy facilities and ports in Gulf countries, as well as preventing ships from passing through Bab al-Mandeb. This move could trigger a renewal of Yemen’s internal conflict, potentially leading to clashes between pro-government forces and anti-Houthi rebels.

The US and Israel have conducted air strikes in Houthi-held areas of Yemen in the past, but the group has since agreed to a truce with the US. However, analysts now believe that this agreement is on the verge of collapse, and a renewal of ground war in Yemen is likely if tensions escalate.

In recent months, the Yemeni government, backed by Saudi Arabia, has regained control of Aden and other southern provinces, boosting their confidence to take on the Houthis. Any escalation in Bab al-Mandeb would further destabilize the region, adding to global economic troubles caused by the US-Israel war on Iran.

Source: Al Jazeera