Houthi rebels have seized the Red Sea port city of Mokha and a Red Sea island from Saudi-backed Yemeni government forces, strengthening their ability to disrupt shipping through the Bab al-Mandab Strait. Saudi Arabia shut its East-West Pipeline after drone attacks originating in Iraq, where Iran supports powerful militias, while Iran continues disrupting the Strait of Hormuz. Saudi oil exports to Asia fell from around 3.4 million barrels a day in June to 128,000 in August before recovering to 700,000 this month, according to Kpler. Riyadh faces difficult military and diplomatic choices as the United States remains reluctant to widen its Middle East war, despite offering intelligence support and maintaining dialogue with Saudi Arabia and Yemen’s government.