The Houthi Challenge
To signal support for Palestine, less than two weeks after Israel began its assault on Gaza in October 2023, the Houthis began to attack maritime shipping in the Red Sea and the Gulf of Aden, targeting American and international vessels supposedly linked to Israel, and launched strikes on Israel itself. Beyond the symbolic gestures of support for Palestinians, these actions placed global trade at risk, as the Red Sea—a vital lifeline for international commerce—became a dangerous battleground, and threatened to expand Israel’s war on Gaza. The Houthis’ moves were not only a political statement to the United States: they challenged its strategic interests. With the stability of maritime routes at risk, the situation in Yemen had suddenly become a far-reaching global crisis. Yemen’s future, and the future of international commerce, now seemed inextricably linked to the actions of the Houthis and the international response.
Determined to stem the growing threat, the United States responded with force. In November 2023, the US and UK militaries started military operations against key Houthi positions across Yemen, conducting numerous other such attacks since then. But despite the immense effort, the results have been far from decisive. The unyielding Houthis have continued to be a source of concern for the United States and its allies.
Indeed, US policies have failed to curb the Houthis’ power and activities in the Red Sea and internally. Instead, US efforts have contributed to the persistence of the Yemen conflict and exacerbated the suffering of the country’s civilians.
Yemen is afflicted by one of the world’s most severe humanitarian crises, which is compounded by internal political paralysis and by external interventions that have failed to address the underlying causes of the war. These causes include long-standing political grievances, particularly the historic marginalization of certain groups (such as the Houthis, historically, and people of the South). Deep socio-economic disparities have been exacerbated by high levels of unemployment, poverty, and corruption, as well as by the regional power struggle between Saudi Arabia and Iran that fueled proxy wars in Yemen. Moreover, the failure to implement the outcomes of previous peace talks, including the Gulf Cooperation Council Initiative and the United Nations-led talks, left a vacuum that only intensified the violence. The Yemeni anti-Houthi coalition, fragmented by competing Saudi and Emirati interests, has undermined the internationally recognized Yemeni government’s ability to challenge the Houthi insurgency. All this has enabled the Houthis to consolidate control, deepening the crisis.
Biden’s Policy in Yemen
The Biden administration’s Yemen policy has been marked by inconsistency: first it focused on humanitarian relief and diplomacy, then prioritized military engagement and sanctions. Initially, it shifted from the first Trump administration’s hardline policy by ending US support for the Saudi-led coalition’s offensive military actions in Yemen. The stakes were high, and President Joe Biden knew it. To guide the United States through the change, he appointed a US special envoy for Yemen, Tim Lenderking, entrusting him with working with the United Nations to end the war and improve the humanitarian situation. The Biden administration also revoked Trump’s designation of the Houthis as a “Foreign Terrorist Organization” and as a Specially Designated Global Terrorist (SDGT). Biden’s goal was clear: to reset American priorities, steering the course toward a more balanced, diplomatic approach to Yemen’s devastating conflict. Despite these efforts, the Houthis remained uncooperative, refusing to make concessions. The Houthis’ October 2023 escalation through Red Sea shipping attacks caught the Biden administration off guard and forced it to reconsider its approach. In December 2023, the United States announced the establishment of an international coalition—Operation Prosperity Guardian—to disrupt the Houthis’ maritime attacks. US and allied militaries then launched airstrikes on key Houthi military targets, aiming to cripple their ability to carry out attacks. In January 2024, the administration took another significant step and officially redesignated the Houthis as a SDGT. The Treasury Department expanded its sanctions, targeting individuals and entities connected to the Houthis’ procurement and smuggling networks.
Thus, the Biden administration shifted its approach to embracing military engagement. In October 2024, US Secretary of Defense Lloyd J. Austin III declared a new strategy of “deter and degrade.” The message was clear—the United States was now focused on dismantling the Houthis’ military capabilities. The first step was a series of targeted strikes on Houthi-controlled underground weapons facilities.
Trump’s second administration needs a strategy to address the deeper issues at play and provide a stable foundation for US interests in the Middle East. But the new administration is likely to face a challenge in balancing the need to secure freedom of navigation in the Red Sea and Gulf of Aden and addressing Yemen’s humanitarian crisis and political instability. This challenge, faced by the United States in Yemen since 2011, has been complicated by the Houthis’ Red Sea attacks. But prioritizing military solutions risks worsening the humanitarian crisis and deepening regional instability. This requires a diplomatic strategy to address Houthi power while avoiding further destabilization.
Critiques of American Policy
The US militarization of the Red Sea has not only failed to limit the Houthis’ capabilities but inadvertently emboldened them. In October 2024, the UN Panel of Experts on Yemen reported that the Houthis had launched at least 134 attacks from areas under their control on commercial vessels from many countries claiming that the ships were headed toward or otherwise linked to Israel, as well as against US and UK warships. These were not minor skirmishes—some of the attacks used new, extremely sophisticated missiles, marking a stunning advancement in the Houthis’ military capabilities. The UN report also revealed that the Houthis had begun charging illegal fees to shipping agencies. Allegedly coordinated through a company linked to a senior Houthi leader, the fees allowed vessels to pass through the Red Sea and Gulf of Aden without being attacked. In this way, the Houthis turned the waterways into a lucrative enterprise, collecting an estimated $180 million a month from their illegal tolls. While the UN could not independently verify these earnings, its report offered a troubling suggestion of how the Houthis had found ways to profit from the very conflict that the United States had set out to contain.
As the US military became more committed against the Houthis in Yemen, it became apparent that the primary focus was safeguarding Israel’s security interests. But as the months passed, it became increasingly clear that this militarized approach came at a cost. Yemen’s deep-rooted political, social, and economic issues were neglected in favor of short-term military objectives. Instead of alleviating the suffering or bringing the warring factions to the negotiating table, the US military presence fueled a cycle of violence. The airstrikes and military interventions, while aimed at protecting strategic interests, seemed to disregard the humanitarian principles that the United States had previously championed. In the end, the strategy offered no clear path to peace.
Challenges for US Strategy in Yemen
The Houthis had been a growing force in Yemen for years, but in 2024, their military capabilities have reached new heights. No longer isolated, they have formed powerful new alliances. Their deepening contacts with Russia are particularly notable: Moscow has begun providing military intelligence and satellite data to the Houthis, and discussions also involved potential Russian arms transfers, including anti-ship missiles. But the Houthis did not stop with Moscow. Their alliances expanded to Iraqi armed groups such as the Islamic Resistance in Iraq and even reached groups like Al-Shabab in Somalia. These connections were not just about weapons: they were about shared interests and coordinated efforts to challenge regional powers.
Policy Directions for the Next Trump Administration
Given the constraints on US military action—due to the American public’s lack of appetite for further conflicts, the weakened state of the internationally recognized Yemeni government, and the potential for a military campaign to inadvertently strengthen the Houthis—the Trump administration should focus on diplomacy, negotiation, and political solutions as the only viable means to resolve the Red Sea crisis and stabilize Yemen.
To effectively address the challenges, the United States must adopt a strategy that transcends narrow military actions against Houthi infrastructure. The real work lies in addressing the broader causes fueling the violence. The first crucial step would be in Gaza, as a ceasefire there would reduce actions that inflame tensions.
Then, the United States should adopt a new approach in Yemen to tackle the root of Houthi power. Iran, Russia, Al-Shabab, and Iraqi militias were all playing a role in bolstering the Houthi insurgency. The Trump administration should apply diplomatic and economic pressure on these external actors to halt their military and financial support for the Houthis. But that will not be enough. The United States must recognize the urgency of cutting off the Houthis’ weapons supply lines that rely on smuggling. It should focus on key smuggling routes in the Red Sea and the Gulf of Aden, where weapons are slipping through the cracks. Both maritime and land-based interdictions should be stepped up, making it harder for the Houthis to continue receiving military resources.
Addressing Yemen’s internal divisions is equally crucial. The United States must focus on an integrated approach that balances counter-Houthi measures with efforts to assist Yemen to rebuild its governance and reconcile its rival factions. This is necessary to avoid exacerbating the country’s fragmentation. Otherwise, Yemen risks becoming permanently entrenched as a proxy battleground, caught between external powers, with no hope of internal resolution. The United States should support Yemen’s political and economic stabilization, which in turn can ensure the foundation for Yemen’s recovery while promoting regional security.
For the incoming Trump administration, the lessons from the past are clear. The United States should no longer rely on piecemeal strategies that only treat the symptoms of Yemen’s crisis. To truly shift the trajectory in Yemen, the United States needs to address the deeper forces behind the conflict.
The key to success is collaboration. The United States should work alongside international and regional partners to develop a unified framework for peace—a framework that is inclusive and responsive to the needs of all Yemeni factions. This means ensuring that the internationally recognized government of Yemen is not a figurehead, but a functioning, capable authority with a mandate to lead. The United States should also press key regional actors, particularly Saudi Arabia and the United Arab Emirates, to align their efforts in Yemen. Their rivalry has long been a major obstacle to any meaningful unity in Yemen. Only by putting aside their differences and coordinating their efforts can they help stabilize the country. With American diplomatic leverage, these actors could form a cooperative framework that tackles Yemen’s political, economic, and security challenges.
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This policy analysis paper was first written for and published on the Arab Center DC's website.