U.S. and UK began bombing campaign against Houthis, risking wider escalation, as U.S. “terrorist” designation of group could compound humanitarian crisis and hamper peace process; frontlines displayed signs of possible renewed conflict.

U.S. and UK launched anti-Houthi airstrikes. In major escalation, U.S. and UK 11 Jan launched airstrikes against dozens of Houthi targets in Sanaa, Sa’adah, Taiz, Hajjah and Hodeida governorates, and 13-14, 16-20, 22, 24, 27 and 31 Jan struck locations in Hodeida, Taiz, Dhamar, al-Bayda, and Sa’adah governorates, citing Houthi attacks on international shipping. Houthis remained defiant, as strikes appeared to inflict limited damage on group’s capabilities or morale and proved counterproductive: Houthis 15, 17 Jan struck U.S.-operated ships in Gulf of Aden and vowed further action, raising prospect that attacks from both sides could escalate in coming weeks.

U.S. re-designated Houthis terrorist organisation. After removing group from “Foreign Terrorist Organisation” list in Feb 2021, U.S. 17 Jan designated Houthis “Specially Designated Global Terrorist”, citing need to impede funding. Designation may hamper international response to humanitarian crisis, further complicate peace talks between Riyadh and Houthis and dampen prospects of dialogue with other conflict actors.

Local fighting escalated in several regions, threatening to upend de facto truce. Houthi shelling 12 Jan killed two govt soldiers in Hodeida governorate. Houthi drone 14 Jan targeted Shabwa Defence Forces in Marib governorate, killing two soldiers. Houthis next day attacked border guards in al-Jawf governorate, killing two. Giants Brigade 23 Jan claimed it repelled Houthi offensive in Bayhan town, Shabwa, causing casualties. Risk of wider ground fighting along frontlines loomed as Houthis may initiate new major offensive, particularly if U.S. and UK provide support to anti-Houthi groups.

Eastern leaders formed new group; regional proxy competition continued. In move seen as countering separatist Southern Transitional Council’s attempts to assert control in east, prominent local leaders in eastern governorates (Hadramawt, al-Mahra, Shebwa and Socotra) 9 Jan announced formation of single entity to counter external influence and advocate equal representation in any political settlement. Highlighting competition between Riyadh and Abu Dhabi, United Arab Emirates-backed Hadhrami Elite Forces 16 Jan blocked entry of Saudi-backed Nation Shield Forces into Mukalla city.