Houthis seize Hanish islands as Saudi pipeline repairs may take weeks

Houthi rebels in Yemen have seized the strategic Greater and Lesser Hanish islands in the southern Red Sea, a move that strengthens their position along a key shipping route. At the same time, repairs to a major Saudi oil pipeline hit in an attack on September 10 could take three to five weeks, according to two regional officials.

The developments came amid wider tensions across the region. Iran said Saudi Arabia had pushed for a planned meeting on the Strait of Hormuz to be postponed, while Tehran also criticised Austria for refusing visas to its nuclear chief and other delegates for an IAEA conference. In Yemen, nearly 94,000 people have fled their homes this month, while in Gaza, Israeli strikes killed two people. The US also announced full sanctions on Russia's VTB Bank over alleged links to Iran's financial network.

Houthi officials said on Monday that the rebels had taken control of the two islands as Saudi-backed government forces tried to regain ground after recent Houthi advances near the Bab el-Mandeb Strait. The passage is a key alternative shipping route to the Strait of Hormuz. Iran effectively closed the Strait of Hormuz in the opening days of the war, and Saudi Arabia has since used the Bab el-Mandeb route for crude oil exports from the Red Sea. The Houthis' latest takeover, after capturing the Red Sea port of Mokha and another strategic island last week, adds pressure on Saudi shipments as well as global oil supplies and prices. The development could also give Iran added leverage in its war with the United States.

Saudi Arabia relies on the East-West Pipeline to move crude from Gulf ports to terminals on its Red Sea coast for export by tanker. Two officials briefed on the matter, who spoke on condition of anonymity, said repairs to the damaged line, including a major pumping facility, could take weeks. One of them said the pipeline may operate only partially while repairs are under way. China, a major importer of Middle East oil, called the Houthi attacks on Saudi energy infrastructure "unacceptable" and said it was "deeply concerned" about further escalation.

Iranian Foreign Ministry spokesperson Esmail Baghaei said on Monday that Saudi Arabia had "demanded" that a meeting involving Iran and other regional countries on the Strait of Hormuz be dropped "for the time being". The meeting was to be hosted by Oman. Baghaei described it as a "proper opportunity" to restore security in the region. He also said an agreement between Iran and Oman on the Strait of Hormuz had been finalised and would be announced later. A Gulf official familiar with the matter, speaking on condition of anonymity, said Saudi Arabia had proposed amendments to the agreement because of concerns it could have lasting implications for the strait and negatively affect other Gulf Cooperation Council countries.

Iran also condemned Austria's refusal to issue visas to its nuclear chief and other members of its delegation for the International Atomic Energy Agency's general conference in Vienna, calling the move "completely unjustified". Baghaei said Tehran had summoned the Austrian charge d'affaires and argued that Austria, as host country, was obliged to issue the visas. He accused Western countries of denying Iran the chance to defend itself and blamed the US for pressuring Austria to reject the applications. The refusal is part of UN sanctions on Iran that were reinstated last year and include a travel ban on Iranian officials.

At the same conference, US Energy Secretary Chris Wright criticised Iran for failing to cooperate with the UN nuclear watchdog. He was particularly critical of Tehran's refusal to allow inspectors access to nuclear sites affected by the war. Wright said Iran had "ample time to address its egregious negligence" towards its obligations, "but that time is up". He also said extra safeguards in the US-Saudi nuclear accord signed in July included "absolutely rigorous" anti-proliferation terms, adding that the IAEA "was part of it all along". Wright was responding to a media question on why the US had asked Iran, but not Saudi Arabia, to sign an Additional Protocol, which gives IAEA inspectors wider access to nuclear sites. The accord could potentially give Saudi Arabia the ability to enrich uranium for its civilian nuclear programme.

In Yemen, the International Organisation for Migration said nearly 94,000 people had been displaced since fighting between Houthi rebels and government forces escalated this month. The worst-hit areas are Taiz and Lahj, where 48,000 people have been displaced. The agency also said more than 2,000 people had fled by sea to Djibouti. The International Rescue Committee said around 200 schools in south-western Yemen had been turned into shelters to house displaced families.

In Gaza, Israeli strikes across the territory on Monday killed two people and wounded several others, according to hospital officials and the health ministry. One person was killed in Gaza City, while another died when a strike hit tents in Muwasi, according to Shifa and Nasser hospitals. Others were wounded in Zawaida in central Gaza and Khan Younis in the south, the health ministry said. The Israeli military confirmed the strikes and said they had targeted militants.

The US Treasury Department on Monday imposed full sanctions on VTB Bank, one of Russia's largest financial institutions, as part of efforts to target what it described as Iran's remaining financial lifelines. The effect of the move remains unclear because the Biden administration had already imposed sweeping sanctions on the state-owned bank after Russia's invasion of Ukraine in 2022. Under Trump, US officials are now accusing VTB of helping Iran evade sanctions by setting up correspondent ties with sanctioned Iranian banks. VTB has expanded its global presence over the years, including opening branches in China, India and Iran.

The latest developments across the Middle East brought together fresh gains by the Houthis in the Red Sea, pressure on Saudi oil infrastructure, renewed disputes over the Strait of Hormuz and nuclear oversight, growing displacement in Yemen, strikes in Gaza, and new US sanctions linked to Iran.