Iran is pushing the Houthis to prepare for a renewed campaign against Red Sea shipping, contingent upon any further escalation by the US in its war on the Islamic Republic, according to European officials familiar with the matter.

Earlier this month, Saudi Arabia began diverting millions of barrels of crude – ordinarily flowing through the blockaded Strait of Hormuz – to its Red Sea port of Yanbu. But the entry of Iran-backed Houthi militants into the war threatens to sever even that oil lifeline.

European officials tell Bloomberg Iran is pressing the Houthis to prepare renewed attacks on Red Sea shipping if the US escalates its war on the Islamic Republic.

Houthis launched ballistic and cruise missiles at Israel, which says it intercepted the strike. Analysts say Iran is pressuring the Houthis to show leverage in U.S. talks.

The Yemen-based, Iranian-aligned Houthis targeted Israel over the weekend, the first time the group carried out an attack since the U.S.-Israel-Iran war began, and its entry into the conflict could have significant impacts on the global economy.

The Iran-backed group opens a new front in the regional conflict—and could soon target Red Sea shipping again.

Who are the Houthis? How rebel group could disrupt global trade amid Strait of Hormuz chaos - Armed group caused global disruption in 2024 through attacks on merchant vessels in the Red Sea

By Siddharth Cavale NEW YORK, March 30 (Reuters) - Brent oil prices slipped on Monday after Group of Seven finance leaders signalled readiness to act to stabilize energy markets, paring earlier gains that had pushed the global benchmark close to $117 a barrel following the Yemeni Houthis’ attacks on Israel.