The Houthis' recent attack on Israel may signal a significant escalation in the war with Iran, with far-reaching consequences for the global economy.
With the closure of the Strait of Hormuz, oil prices could surge further if the Houthis target shipping in the Red Sea.
The economic cost of the war may become high enough for America to abandon it, analysts warn.
The Houthis, a Shia movement aligned with Iran, have reinforced their positions along the Red Sea coast and deployed anti-ship missile batteries and naval sabotage teams.
According to Saudi analyst Nawaf Obaid, the Houthi command architecture is no longer in a deterrence posture, but rather in a strike-ready configuration.
The Houthis have been upholding a de facto ceasefire, but three factors have shifted their calculus: Iran's attacks on Gulf energy infrastructure, the Gulf states' increasing offensive capabilities, and America's military manoeuvres.
The Houthis' economy is also a driving factor, with civil servants unpaid for months and 18m Yemenis facing acute hunger.
With dwindling resources and fresh leverage, the Houthis may yet decide to resume attacks on shipping, with the consequences rippling far beyond Yemen.
