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Yemen's Houthi rebels claimed responsibility for a barrage of drones and missiles aimed at a US warship in the Red Sea on Tuesday, which also apparently targeted commercial ships.
It is the first time the group has admitted directly attacking US naval forces, although it has previously threatened the American navy following the outbreak of the Israel-Gaza war on October 7.
The US military's Central Command said the “complex attack” was thwarted.
American and British jets and warships shot down drones and anti-ship missiles at about 9pm, the US military said.
The Houthis said the attacks were a "preliminary response" to the killing of 10 of their militants by US helicopters last week.
“The naval forces, the missile force, and the drone force of the Yemeni armed forces carried out a joint military operation with a large number of ballistic and naval missiles and drones, targeting an American ship that was providing support to the Zionist entity,” Houthi spokesman Yahya Saree said on Wednesday on X, formerly known as Twitter.
The UK said seven attack drones had been fired at the Royal Navy’s Type 45 destroyer HMS Diamond, all of which it had shot down.
Britain's Ministry of Defence released an image from within the cockpit of HMS Diamond as it apparently engaged the drones.
The assault – the largest so far from the Houthis – came the night before a UN Security Council vote on the threat posed by the rebels.
A draft resolution being put to vote on Wednesday was expected to condemn the group's threat to “navigational rights and freedoms as well as regional peace and security”.
The direct attack on a US ship could hasten calls for tougher action against the group, following a call from France's ambassador to the UN, Nicolas de Riviere, for the Security Council to meet and discuss the crisis.
The draft UN resolution would demand the immediate release of the first ship the Houthis attacked, the Galaxy Leader, a Japanese-operated cargo ship with links to an Israeli company, which the group seized on November 19 along with its crew.
The multinational crew of the ship, who are from the Philippines, Ukraine, Bulgaria and Mexico, among other countries, are still being held by the rebels.
The Iran-backed Houthis fired 18 one-way attack drones, two anti-ship cruise missiles and one anti-ship ballistic missile towards international shipping lanes where dozens of merchant vessels were at sea, the Central Command said.
Will the US and UK respond?
UK Defence Secretary Grant Shapps suggested a response was imminent in a media briefing on Wednesday.
"Watch this space," he said, when asked if the US-led task force would now fulfil its threats of armed response against the Houthis.
Mr Shapps added he had been in touch with fellow military leaders, including in Saudi Arabia, and “we are all agreed in one voice, this cannot continue, and we won't allow it to continue. Watch this space.”
Last week, the US, the UK, Bahrain and other countries demanded that the Houthis halt their attacks in the Red Sea and warned of consequences if they continued their destabilising actions.
“The Houthis will bear the responsibility of the consequences should they continue to threaten lives, the global economy, and free flow of commerce in the region's critical waterways,” they said.
That message should be “taken very seriously”, Pentagon press secretary Maj Gen Patrick Ryder said on Tuesday, shortly before the latest Houthi attack was made public.
But the draft UN resolution, seen by The National, contains less threatening language, calling for “caution and restraint to avoid further escalation of the situation in the Red Sea and the broader region”.
It also calls for “enhanced diplomatic efforts by all parties to that end, including continued support for dialogue and Yemen’s peace process under the UN auspices”.
Earlier on Tuesday, the administration of US President Joe Biden denied Republican claims that it was not doing enough to counter Houthi attacks.
Some US allies have expressed caution about Operation Prosperity Guardian – the mission to protect shipping in the waterway – turning from a protective mission to a direct conflict with the Houthis.
Italy's defence minister said on Wednesday that the group must be stopped without triggering a new war.
“It is a huge problem, it is a consequence of other [war] outbreaks. I would not like to open a third front of war at this time,” Guido Crosetto told Reuters, in a reference to current conflicts in Ukraine and Gaza.
Houthi drone and missile attacks
Last month, the Houthis launched 14 drones against shipping, including naval coalition vessels. While drones have been used against ships before, in Ukraine war, and by Iran for targeting ships with links to Israel, the latest drone attacks are an unprecedented use of the weapons at sea.
American forces used F/A-18s launched from the USS Dwight D Eisenhower aircraft carrier and interceptors from three other ships. A British Royal Navy guided-missile destroyer was also involved.
“This is the 26th Houthi attack on commercial shipping lanes in the Red Sea since November 19. There were no injuries or damage reported,” the Central Command said.
The most deadly clash occurred on December 31, when US helicopters repelled an attack by Houthi small boats against a merchant ship, the Maersk Hangzhou. The Houthis said 10 militants were killed in the three boats that were destroyed.
The Houthis are backed by Iran, which has been accused of enabling the attacks.
Mr Shapps also said he had "no doubt whatsoever" that "the Iranians are heavily behind what the Houthis are doing."
While he said he could not divulge sensitive information, Mr Shapps added that “it's fair to assume a very large amount of Iranian influence is guiding what we're seeing happening”.
“They're helping to guide these attacks, that is certainly the case and we are being very, very clear with Tehran, that this is not acceptable,” he said.
Shipping disrupted
The attacks have caused major disruption to global shipping.
Major companies have chosen to avoid the Red Sea and seek longer but safer routes via southern Africa and round the Cape of Good Hope.
Europe-based MSC, Maersk, CMA CGM and Hapag-Lloyd, and Asia-based Cosco Shipping, HMM and Evergreen Line, are among the companies to have suspended their Red Sea shipping.
Tanker transits through the Suez Canal, at the top of the Red Sea, have fallen by 14 per cent since the first attacks in November.
The Red Sea is usually a crucial trade route through which a significant portion of the world's oil supply is transited.
Carolina Klint, chief commercial officer for Europe at Marsh McLennan, said it was “impossible” to use the Red Sea shipping lanes following the most recent attack.
“The question really is how do we support the global shipping industry in addressing this and potentially identifying alternatives because it is becoming almost impossible to take container ships through the Suez Canal without risking the lives of the crew, without putting them in harm's way,” she told the launch of a World Economic Forum report.
“It’s not only about protecting the biggest ship or protecting the containers but first and foremost … it's the human lives at risk. It is also becoming increasingly difficult because it gets difficult to find an insurer that is willing to take a risk on a ship.”
UAE currency: the story behind the money in your pockets
The years Ramadan fell in May
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
Results
1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec
2. Max Verstappen (Red Bull-Honda) at 0.745s
3. Valtteri Bottas (Mercedes) 37.383s
4. Lando Norris (McLaren) 46.466s
5.Sergio Perez (Red Bull-Honda) 52.047s
6. Charles Leclerc (Ferrari) 59.090s
7. Daniel Ricciardo (McLaren) 1:06.004
8. Carlos Sainz Jr (Ferrari) 1:07.100
9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692
10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,
Favourite book: ‘The Art of Learning’ by Josh Waitzkin
Favourite film: Marvel movies
Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence
Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company%20profile
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'Joker'
Directed by: Todd Phillips
Starring: Joaquin Phoenix
Rating: Five out of five stars
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Liverpool 4-1 Shrewsbury
Liverpool
Gordon (34'), Fabinho (44' pen, 90' 3), Firmino (78')
Shrewsbury
Udoh (27'minutes)
Man of the Match: Kaide Gordon (Liverpool)
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