Scoop: Trump gave Saudi crown prince his backing for risky strikes on Houthis

Context

President Trump gave Saudi Crown Prince Mohammed Bin Salman (MBS) his support for a highly unusual military action against the Iran-backed Houthis in Yemen, according to U.S. officials. Why it matters: The Saudi strike on the Sanaa airport Monday and Houthi retaliatory missile attacks that followed were the most serious cross-border escalation since 2022. They could signal the collapse of a four-year, unofficial truce between the parties. A renewed military conflict between Saudi Arabia and the Houthis could exacerbate regional tensions and broaden the war between the U.S. and Iran. The fact that MBS notified Trump in advance and asked for his backing signals that the Saudis are concerned about a larger conflict with the Houthis that will require military and diplomatic support from the U.S. Behind the scenes: Last week Saudi Arabia told the U.S. it was concerned about the situation and asked for support for possible strikes against the Houthis. On Thursday, the Saudi ambassador to Washington met with Secretary of State Marco Rubio. A day later Rubio spoke to Saudi foreign minister Prince Faisal bin Farhan. Shortly after on Friday, President Trump spoke by phone with the Saudi crown prince, per a U.S. official. MBS asked Trump for his backing for a military action against the Houthis and received it, the official said. When asked for a comment, the White House referred to Trump's comment in an interview with Fox News on Monday morning, in which he harshly criticized Iran. The Saudi embassy in Washington did not respond to a request for comment. Driving the news: The clash between Saudi Arabia and the Houthis started 10 days ago when a plane belonging to Iran's Mahan Air landed in the Houthi-controlled city of Sanaa. It picked up a delegation of the group's leaders, who travelled to the funeral of former Iranian supreme leader Ali Khamenei. It was a rare occurrence: Flights from Iran to Sanaa haven't taken place for more than a decade. Saudi Arabia blocked those flights, fearing they would be used to transfer weapons or Iranian military advisers to the Houthis. "Mahan Air is the IRGC [Islamic Revolutionary Guard Corps] airline. It was designated and sanctioned by the U.S. government," a U.S. official said. The Houthis claimed Saudi fighter jets tried to prevent the plane from landing without success. The Houthis threatened to attack Saudi airports if it happened again. On Monday, as the Iranian plane made its way back from Iran with the Houthi delegation, the Saudi military bombed the Sanaa airport. The plane had to divert and land in Al Hudaydah on the coast of the Red Sea. The U.S. official claimed the plane was carrying weapons, missile parts and military experts for the Houthis. The Houthis then fired ballistic missiles and drones at Abha airport in southwest Saudi Arabia. They also warned airlines not to fly in Saudi airspace until the blockade on Sanaa airport is lifted.

What it means

No call: the only market channels here were low-conviction — below our selectivity bar, where the track record shows no reliable edge.

Causal chain

No clear market signal

Not investment advice · for informational purposes only. Generated 13 Jul, 22:45 UTC