Yemen’s Houthi rebels have seized the strategic islands of Greater and Lesser Hanish in the southern Red Sea, strengthening the Iran backed group’s ability to control a key global shipping route and putting new pressure on Saudi Arabia’s oil exports.
Houthi officials said Monday they had taken the two islands as Saudi backed Yemeni government forces attempted to reclaim territory from the rebels’ rapid recent advances around the Bab el-Mandeb Strait, a critical shipping alternative to the blockaded Strait of Hormuz. The takeover follows the Houthis’ seizure last week of the Red Sea port of Mokha and a separate strategic island, extending a string of territorial gains along Yemen’s coastline.

Iran effectively closed the Strait of Hormuz, through which about a fifth of the world’s traded oil and gas passes in peacetime, in the opening days of its war with the United States. Saudi Arabia had redirected much of its crude exports through the Bab el-Mandeb Strait and Red Sea ports as an alternative route, a workaround the Houthis’ latest advance now directly threatens.
What We Know So Far
Riyadh closed the pipeline carrying oil to those Red Sea ports Friday after it came under attack, according to Reuters. Middle East analyst Fawaz Gerges said the Houthi capture of the islands near Bab el-Mandeb represents a game changer. “It changes the balance of power and gives them far greater geopolitical and geoeconomic leverage over Saudi Arabia, the Gulf, the United States and global trade,” Gerges said.
A planned meeting Monday in Salalah, Oman, between Gulf Arab foreign ministers and Iranian Foreign Minister Abbas Araghchi to discuss a possible arrangement for the Strait of Hormuz was postponed amid disagreements over the terms of the talks, a Gulf source told Reuters. Omani Foreign Minister Badr Albusaidi said the meeting was postponed in the interests of consensus, writing on social media that Oman remains committed to fostering dialogue supporting regional stability, without elaborating on the specific reasons for the delay.
Iranian Foreign Ministry spokesperson Esmail Baghaei said separately that Saudi Arabia had demanded the meeting be scrapped for the time being, describing the gathering as a proper opportunity to help restore regional security. Baghaei said a separate agreement between Iran and Oman on managing the Strait of Hormuz had been finalized and would be announced later. According to a Gulf official who spoke on condition of anonymity, Saudi Arabia had submitted amendments to that agreement, citing concerns it could carry lasting implications for the strait that would negatively affect other Gulf Cooperation Council countries.
China’s Foreign Ministry called Houthi attacks on Saudi energy infrastructure unacceptable and said Beijing was deeply concerned about further escalation against Saudi Arabia. “Attacks on civilian infrastructure that is important to people’s livelihoods are unacceptable,” spokesperson Guo Jiakun said, calling on all sides to exercise restraint and resolve disputes through dialogue.
Separately in Iraq, an ammonia gas leak at a fertilizer plant in the southern province of Basra killed two people and injured 114 others Monday, Iraq’s health ministry said. Health Ministry spokesperson Saif al-Badr said most injuries were minor, though 21 people remained hospitalized.
What Analysts Are Saying
Regional officials and analysts described a deliberate strategy behind the Houthi advance, in which threatening Red Sea shipping while Iran chokes off the Strait of Hormuz allows Tehran and the Houthis to raise oil prices and fuel inflation while narrowing the region’s ability to rely on the United States to resolve the crisis. That approach is designed to force a stark choice on Gulf states between absorbing mounting economic pain or engaging directly with Iran to protect trade and energy stability.
A regional official described Iran’s approach as methodical. “For Iran, this is a chess game. They plan what comes next. They don’t push all their buttons at the same time out of panic,” the official said, describing the Houthis as Iran’s only remaining regional proxy with formidable operational capabilities.
Alex Vatanka of the Middle East Institute said Gulf states may increasingly be focused less on whether they trust Iran than on how to protect their own interests amid hostilities that Washington cannot quickly resolve, a dynamic that could push them toward parallel diplomacy with Tehran and a broader security strategy less dependent on the United States. “The Gulf states are contemplating the basic reality that they might have to cut a deal with the Iranians on their own, regardless of whether they hurt American feelings or not, because America can’t get them out of this quagmire,” Vatanka said.
Former U.S. negotiator Aaron David Miller said the Houthis operate differently from typical proxy forces. “They can weaponize geography and have a dramatic impact on the international economy and on the global oil economy,” Miller said. A Gulf source told Reuters that Washington’s economic pressure campaign against Iran carries an unintended consequence, squeezing America’s own Gulf partners into reconsidering whether continued confrontation with Tehran remains sustainable.
Trump’s reported refusal to grant a Saudi request for U.S. strikes against the Houthis, combined with mounting economic costs, has reinforced a view in some Gulf capitals that negotiating with Tehran is no longer optional but necessary for self preservation, according to regional sources. Asked Sunday whether he was concerned about Gulf states meeting with Iran, President Trump said that was up to them.
Iranian President Masoud Pezeshkian said he held productive talks with UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan in New Delhi on the sidelines of the BRICS leaders summit. “We agreed to put the past aside and look forward to the future, and how we can build a future together,” Pezeshkian said.
Why This Matters
The Houthi advance revives a conflict predating the current U.S.-Iran war. The group, drawn from Yemen’s Zaydi Shiite minority, fought Saudi Arabia in a series of earlier wars before seizing the capital, Sanaa, in 2014, prompting a Saudi led military intervention the following year. Despite years of airstrikes and cross border fighting, the Houthis survived, expanded their capabilities and emerged as one of Iran’s most effective regional allies, now leveraging that survival into direct influence over global shipping routes far beyond Yemen’s own borders.
The dilemma facing Gulf states stems from an unavoidable geographic reality: Iran’s position alongside the region’s key energy and trade corridors makes it an unavoidable factor in any Gulf security arrangement, a reality that decades of confrontation have failed to change. The war triggered by U.S. and Israeli strikes on Iran has now unraveled years of diplomatic efforts aimed at containing Tehran’s regional influence, leaving Gulf states weighing direct engagement with Iran as a more viable path than continued reliance on Washington.
What Happens Next
Whether the postponed Oman hosted meeting between Gulf states and Iran is rescheduled will offer an early signal of whether disagreements over the terms of a Strait of Hormuz arrangement can be resolved. Baghaei’s confirmation that a separate Iran-Oman agreement on the strait has already been finalized suggests progress is continuing on at least one diplomatic track even as the broader multilateral meeting remains stalled.
Continued Houthi advances along Yemen’s Red Sea coast are likely to keep pressuring Saudi oil exports and global prices, reinforcing the pressure campaign analysts say Iran and the Houthis are deliberately pursuing. Given the mounting economic costs described by Gulf sources, further movement toward direct Gulf-Iran engagement appears increasingly likely regardless of Washington’s preferences, as Gulf states weigh self preservation against continued alignment with an unresolved U.S. conflict with Iran.
Reporting drawn from the Associated Press and Reuters

















