Yemen’s Houthis launch attack on Israel, first battle in Iran war

Yemen’s Houthis have launched missile attacks against Israel, the group announced on Saturday. This is the first time that an Iranian-backed militia has intervened in the US-Israel-led war against Iran, which is now in its second month.

“Yemeni forces have carried out their first military operation using a barrage of ballistic missiles targeting important Israeli military installations,” Houthi spokesman Yahya Salih said in a post on X.

Salih said the attack was in support of the Iranian regime and Lebanese Hezbollah forces.

“We have confirmed a missile launch from Yemen toward Israel,” the Israel Defense Forces said, adding that its air defense forces intercepted the threat.

The Houthi move marks an escalation in the conflict that began with US and Israeli airstrikes on Iranian targets on February 28.

Analysts told CNBC that the Houthis could cut off maritime traffic through the Bab el-Mandeb strait, which separates the Arabian Peninsula from the Horn of Africa, through which ships must pass to reach the Red Sea and the Suez Canal, increasing pressure on global trade.

Early Saturday morning, Danish shipping giant Maersk, widely regarded as a barometer of global trade, responded to reports of drone activity and an explosion in Oman’s Salalah port.

“We are pleased to confirm that all Maersk crew members are safe and that Maersk’s vessels and cargo are unaffected,” the company said in a statement. “Following an accident that damaged a terminal crane and caused minor injuries to a port worker, the port was immediately evacuated and operations across the facility were temporarily suspended.”

Maersk announced in early March that due to the situation in the Middle East, it would suspend future cross-Suez sailings through the Bab el-Mandeb Strait until further notice.

The Port of Salalah continues to cooperate fully with relevant authorities and Maersk currently estimates that operations will be suspended for approximately 48 hours. We will notify customers of any changes to this schedule as soon as information becomes available.

The Bab el-Mandeb Strait is estimated to account for 12% of maritime oil trade and 8% of liquefied natural gas trade in the first half of 2023.

Iranian forces have already effectively closed off the Strait of Hormuz between Iran and the Arabian Peninsula, through which about 20% of the world’s oil supplies passed before the war.

Oil prices closed at their highest in more than three years on Friday, as President Donald Trump’s pivot to negotiations with Iran failed to ease market concerns about major supply disruptions in the Middle East.

usa crude oil Crude oil prices rose 5.46% to close at $99.64 per barrel. Brent crude oil prices, the international benchmark, rose 4.22% to settle at $112.57.

President Trump’s move to give Iran a 10-day extension to open the strategic strait did not alleviate supply concerns. The president said in a social media post Thursday that negotiations with Iran are “progressing very well” despite “false statements to the contrary by fake news media and others.”

As part of the announcement, the US president said he would suspend attacks on Iranian energy infrastructure until April 6. Iran has not yet commented on President Trump’s recent remarks.

U.S. Central Command confirmed that the 31st Marine Expeditionary Unit, made up of approximately 3,500 sailors and Marines, arrived in the Middle East on Saturday.

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The amphibious assault ship USS Tripoli and units of the 31st Marine Expeditionary Unit are based in Japan. They were conducting exercises in the area around Taiwan when they were ordered to deploy to the Middle East about two weeks ago.

In addition to Marines, Tripoli also brings transport aircraft, attack fighters and even amphibious assault assets to the region, US Central Command said.

The USS Boxer and two other ships, as well as another Marine expeditionary force, have also been ordered to the area from San Diego.

Saudi Arabia’s East-West Pipeline, which bypasses the Strait of Hormuz, is pumping oil at full capacity of 7 million barrels per day, Bloomberg News reported on Saturday, citing people familiar with the matter.

Crude oil exports from Saudi Arabia’s Yanbu port on the Red Sea currently reach 5 million barrels per day, Bloomberg reported, and the country also exports about 700,000 to 900,000 barrels of oil products per day.

Reuters could not immediately confirm this report. Saudi Arabia’s Aramco 2223.SE did not respond to a request for comment.

Aramco CEO Amin Nasser told reporters on an earnings call in early March that the East-West pipeline was expected to reach full capacity of 7 million barrels per day within days as customers rerouted.

More than 20 U.S. soldiers have been injured in Iranian attacks on Saudi Arabia’s Prince Sultan Air Base in the past week, two people briefed on the matter told The Associated Press. Iran fired six ballistic missiles and 29 drones at the base on Friday, wounding at least 15 soldiers, including five seriously, according to AP sources. The Associated Press source was not authorized to comment publicly and spoke on condition of anonymity.

The base, about 96 kilometers (60 miles) from the Saudi capital Riyadh, was attacked twice earlier this week, including one that injured 14 U.S. soldiers, according to people briefed on the matter. The base is operated by the Saudi Air Force, but is also used by the U.S. military.

The attack came after President Trump claimed talks to end the war were progressing “very well.” Iran says it has not engaged in any negotiations.

The economic fallout from the war extends far beyond the Middle East, and President Trump is under increasing pressure to end Iran’s control of the strait.

Pakistan announced on Saturday that Saudi Arabia, Turkey and Egypt would send top diplomats to Islamabad for talks on ending the war.

Foreign Minister Ishak Dar said in a statement that Saudi Foreign Minister Faisal bin Farhan, Turkish Foreign Minister Hakan Fidan and Egyptian Foreign Minister Badr Abdellatti will arrive on Sunday for a two-day visit to “carry out in-depth discussions on a range of issues, including efforts to reduce tensions in the region.”

Pakistani Prime Minister Shehbaz Sharif said Saturday that he had “extensive discussions” with Iranian President Masoud Pezeshkian about regional hostilities and efforts to end the war.

Also on Saturday, Iranian Foreign Minister Abbas Araghchi told his Turkish counterpart by phone that Iran was skeptical of recent diplomatic efforts to prevent war. Iranian state media reported that Araghchi accused the US of making “unreasonable demands” and taking “contradictory actions”, raising doubts about the prospects for a deal.

Trump’s special envoy, Steve Witkoff, said the United States had given Iran a 15-point “list of actions” toward a possible ceasefire, including proposals to limit Iran’s nuclear program and reopen the Strait. The Iranian government rejected this offer and presented its own five-point proposal, including compensation and recognition of sovereignty over the waterway.

Iranian authorities say more than 1,900 people have been killed in the Islamic Republic, with 19 deaths reported in Israel.

More than 1,100 people have been killed in Lebanon since the start of the war, officials said, where Israel began its invasion of the south.

Meanwhile, at least 13 US soldiers were reported killed, and 80 members of the security forces in Iraq, where Iranian-backed militias are involved in the conflict.

Twenty people were killed in the Gulf states and four in the occupied West Bank.

The United Nations’ International Organization for Migration also said Friday that 82,000 civilian buildings in Iran were damaged, including hospitals and homes for 180,000 people.

The Israeli military said it focused Friday’s attacks on sites in “central Tehran” where ballistic missiles and other weapons are produced. It said missile launch pads and storage sites in western Iran were also attacked, and witnesses in eastern Tehran reported a partial power outage after the airstrike.

The Atomic Energy Organization of Iran announced that the Shahid Kondab heavy water facility in Arak province and the Ardakan yellowcake manufacturing plant in Yazd province were targeted, IRNA reported. It said there were no casualties and no risk of contamination as a result of the attack.

Yellowcake is enriched uranium after impurities are removed from raw ore. Heavy water is used as a moderator in nuclear reactors.

The Israeli military later announced that the raw materials were enriched at the Yazd plant, and that the attack was a major blow to Iran’s nuclear program. Tehran has vowed to retaliate.

At the UN’s request, Iran has agreed to allow humanitarian aid and agricultural shipments through the Strait of Hormuz. UN Ambassador Ali Bahraini in Geneva said Iran had agreed to “facilitate and facilitate” such a move.

This vital waterway typically handles one-fifth of the world’s oil shipments and nearly one-third of the world’s fertilizer trade. While markets and governments are primarily focused on blocking oil and gas supplies, restrictions on fertilizer ingredients and trade threaten agriculture and food security around the world.

— CNBC’s Terry Cullen, Reuters and The Associated Press contributed to this report.