Iran war widens: Tehran's henchmen bomb US allies on terrifying new front…and how it could hit YOUR wallet

By PHILLIP NIETO, US POLITICAL REPORTER Published: 13:46, 23 July 2026 | Updated: 13:58, 23 July 2026 Iran has launched a new front in its war with Donald Trump in the Middle East after the regime's proxy militants bombed oil tankers linked to US allies in the Red Sea. Yemen's Houthi rebels, backed by Tehran, claimed attacks on two Saudi oil tankers Wednesday night. This is their first strike since declaring a blockade on the kingdom's shipping earlier this week.  The Houthis accused the Encelia and Layla ships of defying their embargo on Saudi vessels sailing through the Bab el-Mandeb Strait. The narrow chokepoint is known as the 'Gate of Tears', a name said to come from the treacherous waters that have wrecked ships and drowned sailors there for centuries. The attacks came as US forces carried out a 12th consecutive night of strikes on Iran, and Trump warned that America would destroy an Iranian bridge or power plant for every ship targeted in the Strait of Hormuz. Oil prices rose sharply in response, with Brent crude climbing above $98 a barrel and heading for a monthly gain of around 35 per cent.  Analysts warn the rebels could cut off Saudi Arabia's alternative export route through the Red Sea known as the East-West Pipeline.  If Iran's disruption is successful, it could tighten global supplies at a time when stockpiles are already running low. The squeeze is expected to reach household budgets within weeks due to higher crude prices pushing up the cost of gas, flights and everyday goods. Europe also faces economic turmoil from Tehran widening the war because the continent relies on Saudi diesel shipped through the Red Sea.  Oil for Britain, France, and Germany were already stretched by Ukrainian drone strikes on Russian refineries.