Yemen's Houthis attack Saudi tankers in the Red Sea, threatening to widen Iran war

Yemen’s Iran-backed Houthi rebels said they attacked two Saudi oil tankers in the Red Sea on Thursday, potentially opening a new front as the U.S. military conducted a 12th night of strikes against Iran. The Houthis have threatened to shut down another key trade route, with the world economy already reeling from Iran's closure of the Strait of Hormuz. Iran and the U.S. have meanwhile stepped up their attacks as they vie for control of the strait, through which a fifth of the world's oil and gas passed in peacetime, setting off a scramble for alternative routes. U.S. President Donald Trump threatened “major military punishment” against the Houthis if their attacks on ships continue. “If they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves,” Trump wrote on social media. As the rhetoric escalated, so did the economic fallout. The price of a barrel of Brent crude oil, the international standard, spiked 4.3% Thursday to $98.16, its highest level since early June, before the two sides reached a preliminary peace agreement that has since collapsed. Prime Minister Ali al-Zaidi of Iraq, which has close ties to both the U.S. and Iran, was in Tehran on Thursday to call for peace and dialogue, a spokesperson said. Al-Zaidi met with Trump earlier this month in Washington.