Yemen’s Houthi Rebels Have Been Threatening To Help Iran Close a Key Waterway. They Are Now Targeting Saudi Arabia

Yemen's Houthi rebels, allies of Iran, declared a maritime embargo of Saudi Arabia on Monday.

The group said the decision is based on the "equation of 'an eye for an eye'" and will "respond to all escalation with all escalation, thus solidifying this equation."

It went on to threaten Riyadh further, saying it is ready "for all options, and any foolish act committed by the reckless Saudi enemy through all escalation will be met with a comprehensive and decisive escalation by Allah's will and power."

CNBC noted that Saudi Arabia has been diverting millions of barrels of oil per day from the Strait of Hormuz to the Red Sea as a result of the war between the U.S. and Iran. The Houthis preventing Riyadh from doing so would further exacerbate the disruption taking place in oil markets.

The decision follows a report noting that Iran had told the group to close the Bab el Mandeb strait in the Red Sea if clashes with the U.S. continue to escalate and Tehran makes the call.

Citing two senior Iranian sources and another regional one, Reuters detailed last week that the possibility has been discussed within Tehran's leadership and the Houthis have already been notified of the possibility.

The outlet also detailed that the rebel group has completed preparations for such a scenario, deploying missiles and drones near the waterway.

Along with the Strait of Hormuz, the two chokepoints are among the world's most strategically important shipping lanes, carrying significant amounts of oil and commercial cargo.

Traffic through Hormuz has also largely stopped following renewed clashes between the U.S. and Iran.

A U.S. service member was killed in Iraq on Saturday, taking the death toll in the war with Iran to 17, according to the U.S. Central Command. More than 400 troops have been wounded.

Another attack against an American base in Jordan killed two service member, leading the U.S. to launch airstrikes on Sunday targeting Iran's Islamic Revolutionary Guard Corps.

The US has targeted bridges, electrical facilities and water desalination plants in Iran, leaving 10,000 without water in the country. Tehran's has retaliated by hitting power and desalination plants in Kuwait and elsewhere in the Middle East.

Analysts also focused on recent remarks from an Iranian official, who said talks with the U.S. could be pursued again based on national interests.

Speaking in a press conference, Tehran's Foreign Ministry spokesman Esmail Baghaei said officials had continued exchanging messages with intermediaries despite escalating clashes with Washington.