The Iranian-backed Houthis have ramped up strikes and statements against Saudi Arabia all through July, raising worries that global shipping in the Red Sea may face interruptions.

Accounts from Yemen indicate the Houthis shot down a Turkish-made Saudi drone over the nation. The group has downed aircraft before, including the US General Atomics MQ-9 Reaper, showing they may not retreat. Yet a drop in US-Iran strains might ease pressures in Yemen.

The Yemen conflict is intricate and grew sharper when Saudi Arabia and the Yemeni government blocked Iran flights to Sanaa, the Houthi capital. The Houthis charged Saudi forces with striking the airport. They then warned that if Riyadh kept its restrictions on Houthi areas, they would impose limits on Saudi vessels in the Red Sea.

The Financial Times noted that leading shipping insurers informed brokers they would not offer war cargo coverage to Saudi-linked ships in the Red Sea after Houthi strikes, adding risk to oil shipments from the area.

The report stated that several top marine war insurers at Lloyd's of London Market would bar vessels with any Saudi connections from coverage, including those under other flags that had visited Saudi ports before.

Houthis Assert Strikes on Saudi Sites

The Houthis have asserted strikes in recent days on Yanbu and Jizan zones in Saudi Arabia, vital port sites for Riyadh.

How did matters reach this point? The Iranian-backed Houthis have grown over two decades from a small movement in northern Yemen to one of the strongest armed factions in the Middle East.

Arising from Yemen's Zaidi Shi'ite community, the Houthis battled the Yemeni government in the 2000s before taking Sanaa in 2014. Their push forced the recognized government out of the capital.

Saudi Arabia entered Yemen in 2015 leading an Arab coalition to stop a full Houthi takeover, leading to years of drawn-out fighting.

UN Truce in 2022 Cuts Clashes Between Houthis and Saudi Arabia

In that time Iran boosted aid to the Houthis with technology and know-how that let the group build advanced ballistic missiles and drones. These arms allowed threats to Saudi cities, energy sites, and shipping well past Yemen.

A UN truce in 2022 cut fighting sharply between the Houthis and the Saudi-backed government. Though the formal deal lapsed, a practical ceasefire mostly held, and Riyadh sought talks to exit the conflict.

Then the Hamas attack on Israel occurred on October 7, 2023. The Houthis said this shifted the balance and they would back Hamas and Gaza in the war. They aimed to place themselves as a key part of Iran's regional network and started firing missiles and drones at Israel.

The Houthis also hit commercial ships in the Red Sea, saying the actions tied to Israel or aided Gaza. Those strikes stopped with the US-backed ceasefire in October 2025.

It is unclear if the Saudi-Houthi conflict will expand now or ease in the weeks ahead.