Yemen's Houthis attack Saudi tankers in Red Sea, threatening to widen Iran war

CAIRO — Yemen’s Iran-backed Houthi rebels said they attacked two Saudi oil tankers in the Red Sea on Thursday, potentially widening the Iran war as international oil topped $100 a barrel.

The Houthis have threatened to shut down another key trade route, with the world economy already reeling from Iran's closure of the Strait of Hormuz.

Meanwhile, Iran and the U.S. have stepped up their attacks as they vie for control of the strait, through which a fifth of the world's oil and gas transited in peacetime, setting off a scramble for alternative routes.

As the U.S. carried out a 12th night of strikes across Iran, President Donald Trump threatened “major military punishment” against the Houthis if their attacks on ships continue.

“If they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves,” Trump wrote on social media.

As the rhetoric escalated, so did the economic fallout.

The price of Brent crude oil, the international stand ...