US Attack on Yemen May Spark War With Iran

In a dramatic escalation of Middle Eastern tensions, US President Donald Trump has ordered decisive military strikes against Houthi forces in Yemen. He declared that the United States would deploy overwhelming lethal force until its strategic objectives were achieved.

Trump justified the campaign by accusing the Houthis of engaging in piracy, violence, and terrorism against American and allied ships, aircraft, and drones in the region. He vowed that no terrorist group would be allowed to interfere with global shipping routes, asserting that American commercial and naval vessels must sail freely through international waterways without fear of attack.

Western media reports have extensively covered the Houthis’ ongoing attacks on shipping vessels in the Red Sea. It is alleged that the Houthis are backed by Iran. They claim their actions are a direct response to Israel’s military campaign in Gaza. They argue that their attacks are acts of solidarity with Palestinians suffering under Israeli bombardment. The group previously stated they would halt hostilities in the Red Sea if Israel agreed to a ceasefire with Hamas.

Trump’s rhetoric left no room for negotiation. "Support for the Houthi terrorists must end immediately," he declared. "Do not threaten the American people, their President, or worldwide shipping lanes. If you do, beware, because America will hold you fully accountable, and we won’t be nice about it."

His statements signaled a stark warning to regional powers, particularly Iran, which has long been accused of arming and financing the Houthis.

The strikes on Yemen are increasingly viewed not just as an attack on the Houthis, but as the opening of a larger, more dangerous proxy war between the United States and Iran.

While the Houthis themselves are a localized force, their ties to Tehran position them as a key player in the broader struggle for influence across the Middle East.

Iran insists its nuclear program remains peaceful, yet tensions with Washington and its regional ally, Israel, continue to escalate.

Iran’s support for groups like the Houthis, Hezbollah in Lebanon, and various militias in Iraq and Syria are seen by Western powers as efforts to project power and undermine US and Israeli interests.

International condemnation of Israel’s military actions in Gaza continues to grow, with many accusing the country of committing genocide against Palestinians.

The humanitarian crisis in Gaza has fueled anger across the Middle East, amplifying support for groups like the Houthis who present themselves as defenders of the Palestinian cause.

This complex web of conflicts — Israel’s actions in Gaza, Iran’s regional influence, and US intervention — is increasingly pulling global powers into a dangerous confrontation.

Trump’s military stance is not likely to secure shipping routes in the short term, but it risks inflaming an already volatile region.

With Iran’s deep-rooted influence in Yemen and beyond, the US may find itself drawn further into an extended, unpredictable conflict — one with consequences that could reverberate far beyond the Middle East.

China and Russia reject US maximum pressure

Lately, China, Iran, and Russia held talks in Beijing, urging diplomacy over “pressure and threats” and calling for an end to “illegal unilateral sanctions” on Iran.

The meeting, led by deputy foreign ministers from the three nations, comes as China positions itself as a key player in resolving Iran’s nuclear issue.

This follows US President Donald Trump’s statement that Iran faces two options: a deal or military action.

China’s Executive Vice Foreign Minister Ma Zhaoxu emphasized eliminating the root causes of the crisis, rejecting sanctions and force.

The joint statement called for avoiding escalation and fostering a diplomatic resolution. The urgency grows as the UN nuclear watchdog warns of Iran’s expanding uranium stockpile, though Iran maintains its program is peaceful.

Beijing opposes US sanctions and the Trump administration’s “maximum pressure” campaign, which began after the US withdrew from the 2015 Iran nuclear deal — the Joint Comprehensive Plan of Action (JCPOA).

The deal’s looming October deadline could trigger a “snapback” of UN sanctions unless a new agreement is reached.

China, alongside European powers, hopes to salvage the JCPOA or craft a new deal. Trump remains open to negotiation but maintains pressure through sanctions, while Iran’s leadership rejects talks under US duress.

China’s diplomatic push aligns with its goal of emerging as a global leader, especially as Trump’s "America First" policy shifts US foreign strategies. The Beijing meeting also showcased non-Western approaches to global issues.

For Iran, the talks offered a chance to reinforce ties with China and Russia — key allies amid Western sanctions. Tehran and Moscow have deepened cooperation, particularly through military support in Ukraine, while China remains a vital economic and diplomatic partner.

China seeks to balance its relationships across the Middle East, including ties with Saudi Arabia, and mitigate potential risks to its businesses from US pressure on Iran.

Analysts note that China’s limited experience in Middle Eastern diplomacy and Iran’s independent stance could restrict its role as a deal broker. Despite this, China’s efforts signal growing influence and alignment with Russia and Iran against Western pressure.

Trump launches strikes against Houthis

US President Donald Trump launched military strikes against Yemen's Houthis on Saturday over the group's attacks against Red Sea shipping, warning "hell will rain down upon you" if the Houthis do not abandon their campaign, reports Reuters.

Trump also warned Iran, the Houthis' main backer, that it needed to immediately halt support to the group. He said if Iran threatened the United States "America will hold you fully accountable and, we won’t be nice about it!"

At least nine civilians were killed and nine injured in US strikes on Yemen's Sanaa, according to the Houthi-run health ministry.

Residents in Sanaa said the strikes hit a building in a stronghold of the militant Houthi group.

"The explosions were violent and shook the neighborhood like an earthquake. They terrified our women and children," one of the residents, who gave his name as Abdullah Yahia, told Reuters.

The Houthis launched more than 100 attacks targeting shipping from November 2023, saying they were in solidarity with Palestinians over Israel's war with Hamas in Gaza. During that period, the group sank two vessels, seized another and killed at least four seafarers in an offensive that disrupted global shipping, forcing firms to re-route to longer and more expensive journeys around southern Africa.

The previous US administration of President Joe Biden had sought to degrade the Houthis ability to attack vessels off its coast but limited the US actions.

US officials, speaking on condition of anonymity, say Trump has authorized a more aggressive approach, which appeared to match his rhetoric on Saturday.

"The Houthi attack on American vessels will not be tolerated. We will use overwhelming lethal force until we have achieved our objective," Trump wrote.

The attack marks the first strikes to hit Yemen since the Gaza ceasefire deal took effect in January, this year.

It also came a few days after the Houthis said they would resume attacks on Israeli ships passing through the Red and Arabian seas, the Bab al-Mandab Strait and the Gulf of Aden, ending a period of relative calm starting in January with the Gaza ceasefire.

 

Iranian crude oil meets global standards

National Iranian Oil Company (NIOC) has dismissed claims in some media outlets about the production of low-quality crude, stating that Iran's oil exports meet global standards and urging biased media to prioritize national interests.

According to a report by the Islamic Republic of Iran Broadcasting (IRIB), NIOC emphasized that it consistently prioritizes crude oil quality to maintain its brand and meet the expectations of its customers.

The company stated that refineries—both domestic and international—are the primary consumers of Iranian crude, and maintaining quality is essential, as any decline would disrupt export and transportation operations.

NIOC further noted that during periods of peak production or when output expansion is a policy focus, fluctuations in crude oil’s water and salt content may occur. However, the company stressed that such variations are not a cause for concern and do not impact the global price of Iranian crude.

Iran’s oil exports have risen significantly in recent months, driven by increased shipments to China and other Asian buyers.

According to OPEC’s latest monthly report, the Islamic Republic’s crude oil production increased by 37,000 barrels per day (bpd) in February.

China remains the top destination for Iranian crude, with independent refiners in Shandong province being key buyers.

Iran has also strengthened its energy ties with Russia and Venezuela, engaging in barter trade and joint refining projects to expand its market reach.

Tehran has ramped up oil production while navigating sanctions through intermediaries and alternative payment mechanisms.

The increased output has positioned Iran as a more prominent supplier in global energy markets, with analysts noting that its crude remains competitively priced compared to other West Asian producers.

 

PSX records lackluster movement

Pakistan Stock Exchange (PSX) witnessed lackluster sentiments during the week ended on March 14, 2025.Trading activity remained subdued due to Ramadan, with average daily traded volumes plunging to 337 million shares. 

The week started on a negative note as the State Bank of Pakistan (SBP) decided to leave the interest rate unchanged, coupled with the IMF raising concern over government’s plan for resolving PKR1.25 trillion circular debt through commercial bank borrowing, kept investors cautious.

However, positive developments in ongoing policy-level discussions with IMF improved sentiment during the last two trading sessions, enabling the benchmark index to close on Friday at 115,536 points, with weekly gains of 1,137 points or up 1.0%WoW.

As per news flows, IMF has agreed to cut the FBR tax target by PKR620 billion, lowering total revenue target to PKR12.35 trillion, while assuring readjustments in expenditure by authorities to maintain a primary surplus of PKR2.4 trillion.

Notably, FBR tax collection during 8MFY25 missed the target by PKR600 billion.

The IMF revised Pakistan’s GDP growth forecast to range between 2.0 to 2.25% from 3.6% earlier, while also lowering its inflation projection to 7.0% from 12.5%.

Meanwhile, Moody’s upgraded Pakistan’s banking sector outlook to positive from stable, along with upward revision in GDP projection.

Worker remittance increased by 39%YoY to US$3.1 billion during February 2025.

Foreign exchange reserves held by SBP eroded by US$152 million to US$11.1 billion as of March 07, 2025.

Other major news flow during the week included: 1) China rolls over US$2 billion loan to Pakistan for one more year, 2) GoP mulls higher petrol levy amid revenue shortfalls 3) Passenger car sales increased by 44.6%YoY to 67,135 units during first eight months of the current financial year, 4) GoP hikes gas tariff for captive power plants on IMF prodding, and 5) ECC approves amendments to net-metering regulations, cuts buyback rate to PKR10/unit.

Miscellaneous, and Inv. Banks/ Cos. were amongst the top performing sectors, while Jute, Synthetic & Rayon, and Glass & ceramics remained laggards.

Major selling was recorded by Mutual Funds with a net sell of US$7.6 million. Banks absorbed most of the selling with a net buy of US$7.6 million.

Top performing scrips of the week were: PABC, PSO, MARI, JDWS, and DGKC, while laggards included: IBFL, ISL, TGL, INIL, and PGLC.

According to AKD Securities, the market is expected to remain positive with the potential announcement of a staff-level agreement on the first review over the weekend acting as a key trigger for momentum.

The market is anticipated to sustain its upward trajectory, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

The top pick of the brokerage house include: MEBL, MCB, HBL, FFC, ENGROH, OGDC, PPL, PSO, LUCK, FCCL, INDU, ILP, and SYS.

 

 

 

                                                                                           

West Asia can ensure its security, claims Iranian commander

Iran's Navy Commander, Rear Admiral Shahram Irani, stated that countries in West Asia are capable of handling their own security and urged external actors to rethink their involvement in the region. 

Speaking to Al Jazeera, he emphasized that regional nations are no longer as vulnerable as they once were and possess the means to protect themselves.

“The region is no longer what it used to be, and its countries are equipped to ensure their safety; therefore, foes must change their policies and respect regional nations,” The commander stressed.

Admiral Irani also asserted that Iran rejects isolation and will operate within international legal frameworks.

“The behavior of Iranians, particularly in the current regional context, aligns with international laws,” he noted. 

“Regional instability will harm the global economy,” Admiral Iravani said, adding that Iran is offering expertise to West Asian regional countries. 

The statement came as Iran, Russia, and China wrapped up a joint maritime exercise dubbed “Maritime Security Belt 2025” in the Indian Ocean on Wednesday, alongside observers from several other nations.

In related remarks on Tuesday, Foreign Minister Abbas Araghchi congratulated Admiral Irani on the successful execution of the exercises, emphasizing the Navy's strength and international dominance.

The top diplomat said the drills, beginning on March 10, demonstrated the Navy's decisive attitude and global operational capabilities.

He also stressed the importance of an assertive presence in expansive oceanic areas for maritime security and development.

“Iran has an unwavering determination to maintain and enhance the security of the strategic and sensitive Persian Gulf region, the strategically crucial Strait of Hormuz within it, the Sea of Oman, and beyond. These exercises were a reflection of that resolve.” Araghchi noted. 

 

US imposes sanctions on Iranian oil minister

According to Reuters, the United States imposed sanctions on Thursday on Iran's Oil Minister Mohsen Paknejad and some Hong Kong-flagged vessels that are part of a shadow fleet that helps disguise Iranian oil shipments.

President Donald Trump re-imposed a maximum pressure policy on Iran in February that includes efforts to drive its oil exports to zero in order to stop Tehran from obtaining a nuclear weapon and funding militant groups.

It was alleged that Paknejad oversees the export of tens of billions of dollars’ worth of Iranian oil and has allocated billions of dollars’ worth of oil to Iran’s armed forces for export.

“The Iranian regime continues to use the proceeds from the nation’s vast oil resources to advance its narrow, alarming self-interests at the expense of the Iranian people,” Treasury Secretary Scott Bessent said in a statement.

“Treasury will fight and disrupt any attempts by the regime to fund its destabilizing activities and further its dangerous agenda.”

Treasury also designated owners or operators of vessels that have delivered Iranian oil to China or lifted it from storage there, it said. Those were in multiple jurisdictions, including India and China, it said.

Iran's military relies on a vast shadow fleet of ships to disguise shipments of oil worth billions of dollars to China.

Thursday's designated vessels include the Hong Kong-flagged Peace Hill and its owner Hong Kong Heshun Transportation Trading Limited, the Iran-flagged Polaris 1, the Seychelles-registered Fallon Shipping Company Ltd, and the Liberia-registered Itaugua Services Inc.

It also designated the Panama-flagged Corona Fun, which it said has manipulated automatic identification systems to disguise efforts to ship Iranian oil, and the San Marino-flagged Seasky, for transporting fuel oil on behalf of Iran's national oil company to China.

The sanctions block US assets of the designated entities and prohibit Americans from engaging in any transactions with them.

The US Department of State is designating three entities and three vessels as blocked property, it said.