US-IRAN CONFLICT: WAR AND DIPLOMACY

A senior Houthi official on Wednesday rejected the Saudi-led coalition's claim that the group launched a drone towards Makkah, calling the allegation a "worn-out lie".

"The claims about targeting Makkah are a worn-out lie that has been used before and no longer fools anyone," Hazem al-Assad, a member of the Houthi politburo, said on X.

The statement came after the Saudi-led coalition said its air defences had intercepted and destroyed a Houthi drone south of Makkah before it entered prohibited airspace over the holy city.

Coalition spokesperson Turki al-Malki described the incident as the second alleged Houthi attempt to target Makkah, following what the coalition said was a ballistic missile launch towards the city in July 2017.

The Organisation of Islamic Cooperation meanwhile condemned what it described as "heinous" Houthi attacks against Makkah and the Madinah region, further escalating the diplomatic fallout from the incident.

The Organisation of Islamic Cooperation on Wednesday condemned what it described as "heinous" Houthi attacks on Makkah and the Madinah region, as the Yemen-based group denied targeting the Islamic holy sites.

"The General Secretariat of the Organisation of Islamic Cooperation (OIC) condemns the heinous attacks carried out by the Houthi group against the city of Makkah and the Madinah region, as well as its ongoing aggression against the Kingdom of Saudi Arabia," the organisation said in a statement.

The OIC's statement came after Saudi Arabia's air defences said they had intercepted and destroyed a Houthi drone south of Makkah on Tuesday before it entered prohibited airspace over the holy city.

The Saudi-led coalition described the incident as the second Houthi attempt to target Makkah, following what it said was a ballistic missile launch towards the city in July 2017. The Houthis have denied posing any threat to Makkah or other holy sites.

The latest escalation comes amid a surge in Houthi attacks on Saudi Arabia, with the group expanding its military activity along Yemen's Red Sea coast and around the strategic Bab el-Mandeb Strait.

Saudi Arabia has issued security alerts in several areas, including Makkah, Jeddah and Taif, as the renewed Yemen conflict increasingly overlaps with the wider regional war and threatens key maritime and energy routes.

Pakistan has condemned Houthi attacks on Saudi Arabia in the strongest terms, warning that the escalation threatens regional peace and stability and could have serious consequences for the global economy and energy security.

Addressing an emergency UN Security Council meeting on Yemen, Pakistan's Permanent Representative Asim Iftikhar Ahmad said, "Pakistan condemns, in the strongest terms, all Houthi attacks against the Kingdom of Saudi Arabia."

He said Prime Minister Shehbaz Sharif had reiterated Pakistan's strong condemnation of the attacks during a conversation with Saudi Crown Prince Mohammed bin Salman, while stressing their wider implications.

"They threaten regional peace and stability with serious consequences for the global economy and energy security," Ahmad said.

He added that Pakistan would continue its "earnest efforts at the highest levels" to help defuse tensions and advance peace and stability in the region.

US Vice President JD Vance has said the conflict with Iran will enter a 'much different phase' in the coming months, as Washington shifts its focus towards preventing Tehran from rebuilding capabilities damaged during the war.

Vance said the initial phase of the US military campaign had focused on destroying Iran's nuclear programme and degrading its military capabilities. He has previously said Washington's objective was not only to destroy Iran's nuclear facilities but also to prevent Tehran from attempting to rebuild them.

He said the next phase would centre on ensuring Iran could not restore those capabilities, while maintaining pressure on Tehran.

Vance's comments come as the six-month-old conflict continues to disrupt regional security and shipping through the Strait of Hormuz. The US war against Iran has already cost Washington an estimated $38 billion through August 1, with the Congressional Budget Office projecting costs could rise by another $3 billion a month if the conflict continues.

Saudi air defences intercepted and destroyed a drone launched by Yemen's Houthis on Tuesday before it entered prohibited airspace over Makkah, the Saudi-led coalition in Yemen said on Wednesday.

Coalition spokesperson Turki al-Malki said it was the second Houthi attempt to target the holy city, Islam's holiest site and the focal point of the annual Hajj pilgrimage. The first, according to the coalition, involved a ballistic missile launch in July 2017.

The coalition said the security of the Two Holy Mosques was a 'red line' and that it would take necessary measures against the Houthis.

Several explosions were heard on Iran's Qeshm island early on Wednesday, with the sounds apparently coming from the direction of the sea, Iranian state news agency IRNA reported, citing local sources.

IRNA did not immediately provide details on what caused the explosions or whether there were any casualties or damage.

Qeshm, located near the Strait of Hormuz, has been repeatedly affected by military activity during the six-month-old US-Iran war. Recent US and Israeli strikes have damaged infrastructure on the island, including a fishing pier and residential buildings, according to footage and reporting carried by Reuters Connect.

The latest explosions come as tensions remain high around the Strait of Hormuz, a crucial route for global energy shipments. Shipping traffic through the waterway has fallen sharply amid the escalating conflict and security concerns.

There was no immediate confirmation from the US or Iranian military of any new strike or attack linked to the explosions.

The Red Sea is emerging as another major flashpoint in the widening Middle East conflict, with Saudi Arabia and Egypt calling for freedom of navigation as Yemen's Houthis tighten their grip on the southern entrance to the waterway.

The Houthis now control Yemen's Red Sea coast and the strategic Bab el-Mandeb Strait, while Saudi Arabia faces repeated missile and drone attacks on its territory and oil infrastructure. Riyadh has vowed a firm response.

For Egypt, the stakes are also high. Bab el-Mandeb is the gateway to the Suez Canal, a crucial source of revenue for Cairo. Canal revenues are already around half their pre-2023 level after the Houthis began attacking Red Sea shipping.

With Hormuz already under severe pressure, further disruption in Bab el-Mandeb could put another vital global trade and energy route at risk.

US Central Command said US forces have redirected 103 commercial vessels as of September 15, while enforcing the US blockade against Iran in the Arabian Sea.

Centcom said the vessels were redirected to ensure compliance with the blockade.

The command also released footage showing an MH-60 Sea Hawk helicopter taking off from the flight deck of the USS Rafael Peralta as the ship carries out the operation.

The six-month-old US war against Iran has already cost $38 billion, and the bill is expected to grow by another $3 billion every month, according to the Congressional Budget Office (CBO).

The financial burden is only part of the problem. The war has rapidly depleted US munitions stockpiles, with CBO estimating that some weapons could take five years to replenish. The shortages could also affect Washington's ability to respond to another major conflict.

The conflict is meanwhile adding to pressure on consumers through higher energy prices and is expected to lift inflation by 0.5% in early 2027.

And the $38 billion figure is not the final bill. The CBO accounting does not include some recent military operations or the borrowing costs associated with financing the war, meaning the eventual cost could be substantially higher.

European Union foreign policy chief Kaja Kallas has said that the Houthi attacks in Yemen and Saudi Arabia, as well as threats to freedom of navigation, are a predictable development, reported Al Jazeera, citing a statement.

“The Houthis have now extended their grip along the critical coast of Yemen, potentially choking another crucial strait – Bab al-Mandeb – with dire implications for the global economy,” Kallas said in a statement to the EU parliament.

“EU naval operation ASPIDES continues to escort vessels in the Red Sea,” Kallas said.

Kallas told lawmakers that the EU will coordinate with the Multinational Maritime Defense Alliance, a Saudi-led 14-country coalition created to safeguard navigation through the Bab al-Mandeb Strait, the Red Sea and the Gulf of Aden.