The Houthi insurgency in Yemen is a multifaceted threat: It undermines regional stability, endangers global commerce, and furthers Iranian ambitions in the Middle East. The group’s maritime operations in the Red Sea, its use of advanced weaponry, and its leveraging of Yemeni ports for arms smuggling necessitate U.S. strategy recalibration.
Houthi attacks on commercial vessels using missiles, naval mines, and drones raise insurance premiums, reroute trade routes, and disrupt supply chains. The Bab el-Mandeb strait is a chokepoint for international commerce, with four million barrels of oil passing through daily in 2024, less than the amount that transited in 2023. These Houthi attacks reverberate across energy markets, exacerbating global economic instability.
Houthi actions are part of Iran’s broader “Axis of Resistance” strategy to project power.
The Houthis’ integration of Iranian- and perhaps Chinese-supplied technology further heightens the threat. Precision missile strikes, long-range drones, and naval mines render traditional defense measures inadequate. Houthi actions are part of Iran’s broader “Axis of Resistance” strategy to project power, challenge U.S. influence, and expand its network of proxies across the region.
Equally alarming is the weaponization of Yemeni ports such as Hudaydah and As-Salif. These ports serve as logistical hubs for the Houthis’ military campaigns and conduits for smuggled Iranian arms, enabling continued aggression and undermining international sanctions. By exploiting these assets, the Houthis have entrenched themselves, making any effort to address the crisis through conventional means increasingly difficult.
Containment and reactive measures have proven insufficient; only decisive efforts to eliminate the Houthi threat can ensure the security of sea lanes, protect American interests, and stabilize the region. Such a strategy should rest on three pillars: military action, diplomatic coordination, and economic disruption.
The U.S. Navy, in coordination with regional allies, must expand its presence in the Red Sea and Gulf of Aden to secure maritime trade routes. Enhanced surveillance, interdiction operations, and targeted strikes against Houthi naval assets are essential to neutralize their maritime capabilities. Additionally, the U.S. should support local proxy forces and anti-Houthi militias with training, intelligence, and advanced equipment to dismantle Houthi strongholds and cut off supply lines.
Building an international coalition is critical to the success of this strategy. The U.S. should lead efforts to align Gulf Cooperation Council (GCC) states, European allies, and key Asian trading partners around a unified approach to the Houthi threat. This includes securing commitments for joint maritime patrols, intelligence sharing, and coordinated sanctions against Iranian arms suppliers. The U.S. also must leverage its influence at the United Nations to strengthen enforcement mechanisms for existing sanctions and delegitimize the Houthis as a political entity.
That the United Nations now pays Houthi salaries is a scandal that must end.
The Houthis rely on smuggled arms, illicit taxation, and resource exploitation to sustain their operations. Targeting these revenue streams should be a priority. The U.S. and its allies must cease tolerating the United Nations’ failure to implement the 2018 Stockholm Agreement. That the U.N. now pays Houthi salaries is a scandal that must end. Further, the United States can deploy cyber operations to disrupt Houthi financial networks, enforce naval blockades to restrict smuggling, and establish internationally supervised mechanisms to ensure humanitarian aid bypasses Houthi control.
An innovative addition to this strategy could involve the use of Letters of Marque and Reprisal, a constitutional tool allowing private entities to act against hostile actors with government authorization. By commissioning private maritime security firms to supplement U.S. Navy efforts, Washington can cost-effectively enhance its operational capacity while minimizing the burden on its military. These privateers would focus on intercepting Houthi naval operations, dismantling smuggling networks, and protecting commercial vessels.
The success of this strategy also hinges on mobilizing support from key stakeholders in the global shipping industry and insurance markets. Companies like Maersk, MSC, and Lloyd’s of London have a vested interest in securing the Red Sea trade routes. Engaging these stakeholders through public-private partnerships can generate operational support and political advocacy for the initiatives.
Simultaneously, a robust public awareness campaign is essential to garner domestic and international support. By framing the issue as a global challenge with economic, security, and humanitarian dimensions, U.S. leaders can rally widespread backing for action.
The Houthi insurgency in Yemen represents more than a localized conflict; it is now a key component of Iran’s effort to destabilize the Middle East and undermine U.S. influence. The group’s ability to disrupt global shipping, target U.S. allies, and exploit Yemeni resources poses a direct challenge to international stability. The time for containment has passed. The incoming Trump administration must calibrate policy to reality, rather than wishful thinking. By adopting a comprehensive strategy, the Trump administration can not only eliminate the Houthi threat but also reaffirm the United States’ commitment to safeguarding global commerce and regional security.
