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Iran is widening the conflict, launching new attacks on U.S. allies across the Middle East. Iranian drones struck parts of Kuwait, while the Islamic Revolutionary Guard threatened British military bases after the U.K. allowed the U.S. to launch B-1 bomber missions from its territory. The escalation comes as Iran-backed Houthi rebels attacked two Saudi oil tankers in the Red Sea, helping push oil prices above $100 a barrel and raising fears the war is expanding into a second front.

Leaked Video Shows Sana’a Traders Confront Houthi Authorities Over Crushing Taxes A rare leaked video from a meeting in Sana’a provided an unusually candid look at the growing anger of businessmen and traders toward Houthi run authorities. During the meeting with the General Investment Authority, attendees openly voiced frustration about what they described as hostile policies that are destroying Yemen’s private sector and driving investors out of the country. One trader revealed that he previously marketed 35 different brands, all of which the Houthi controlled government has now banned. He implied that the brands were perceived to be linked to the United States, and therefore politically targeted. After losing those brands, he invested around 10 million dollars to secure new ones. When the latest shipments arrived at land borders more than two months ago, customs authorities refused to let them in, arguing that he did not have the required “allocation” from the Ministry of Commerce and Industry in Sana’a. In desperation, he asked whether the authorities wanted him to jump off Nuqam mountain and end his life, or simply take his money and leave the country. Another trader said that although authorities publicly acknowledge a 35 percent shortage of essential medicines, entrepreneurs who try to import pharmaceuticals face obstacles rather than support. Instead of easing entry procedures to help address the shortage, the government creates barriers that delay or block medical supplies. Several participants said that they used to encourage Yemeni American and other diaspora investors to build factories in Yemen. Many of these investors have now lost their capital, gone into debt, and seen their businesses collapse. They said investors who tried to help revive Yemen’s industry after years of war now regret ever bringing their money back into the country. Traders noted that 52 water bottling factories in northern Yemen have shut down since 2022. This comes on top of damage caused by airstrikes and the wider effects of the war. Those still operating are fighting to preserve family owned brands that in some cases were built by their grandfathers, but they are now on the brink of closure due to relentless financial pressure. They described a chaotic investment environment with conflicting authorities and overlapping laws. The Ministry of Finance, which controls taxes and customs, interprets investment laws differently from the General Investment Authority. The Ministry of Commerce and Industry applies its own standards as well. Traders said this makes compliance nearly impossible and allows officials to block goods or demand new payments whenever they choose. Participants argued that the General Investment Authority, which is supposed to defend and support investors, has instead become another body that imposes fees rather than easing them. They highlighted repeated five new tax hikes since August 2025, including an increase in the teacher support fund levy from 1 Yemeni riyal to 20 riyals, along with a growing number of new funds and agencies, whether cultural, religious, or administrative. Each one adds its own mandatory fees or charges that drain the private sector. The leaked video captured a rare and public outpouring of anger. Business owners said they feel abandoned, suffocated, and pushed toward bankruptcy. One trader summarized the sentiment plainly, saying that the authorities have not created an environment for investment, they have destroyed