The Houthis’ capture of territory and islands overlooking the Bab el-Mandeb Strait has delivered Saudi Arabia its gravest setback in Yemen in years, threatening Red Sea shipping and oil exports while exposing divisions among Saudi-backed Yemeni forces, intelligence failures and the limits of U.S. security support. President Trump has reportedly rejected Crown Prince Mohammed bin Salman’s request for U.S. strikes, although Washington is sharing military information, helping develop targets and sending advisers. Vice President Vance said the administration was monitoring events and protecting U.S. interests, while U.S. Ambassador to Israel Mike Huckabee said the fighting had not significantly broadened the wider U.S.-Israeli conflict with Iran because the Houthis had not attacked American targets. The Houthis’ gains have choked the Bab el-Mandeb Strait and followed attacks that forced Saudi Arabia to close the East-West Pipeline in the Riyadh and Medina regions for weeks. Oil reached $109 a barrel on Monday and U.S. gasoline averaged $4.23 a gallon on Wednesday morning. Analysts said Washington’s reluctance reflects its effort to portray fighting with Tehran as nearly over, but warned the United States could eventually be drawn in if the Houthis consolidate more territory or energy prices rise further. The setback has also revived doubts about U.S. security guarantees and increased Iran’s leverage over the Bab el-Mandeb and Strait of Hormuz.