Yemen's Iran-backed Houthi movement announced on Monday that it would impose a naval blockade on Saudi Arabia. The move has opened a new front in the ongoing conflict involving the United States and Iran. It has also increased concerns over global energy supplies and international trade. The announcement came during one of the deadliest phases of the conflict for U.S. forces.

The Pentagon identified two U.S. soldiers who died after Iran attacked an American military base in Jordan on Friday. Officials also said they had recovered unidentified remains that could belong to a third soldier who had been listed as missing in action. In a separate incident, another U.S. service member died in northern Iraq during the "controlled detonation of unexploded ordnance from a downed Iranian one-way attack drone."

Soon after the Houthi announcement, the Saudi-led coalition in Yemen said it would respond with force. The coalition also announced new security measures to protect ships passing through the Bab el-Mandeb Strait. The waterway has become an important export route for Saudi oil after the Strait of Hormuz faced major disruptions.

The Houthi decision came even as signs suggested that Iran and the United States were trying to restart diplomatic talks. Both countries are attempting to stop the growing cycle of attacks that has weakened a temporary agreement signed last month. Iran's Foreign Ministry said mediators had presented "proposals" to Tehran. The ministry did not share any details but indicated that diplomatic contacts were still active.

Oil prices briefly moved higher after the Houthi statement. They later eased as traders remained hopeful that diplomatic efforts could reduce tensions. At the same time, insurance costs for ships travelling through the Red Sea increased due to rising security risks.

Iran has reportedly urged the Houthis to shut the Bab el-Mandeb Strait if the United States continues targeting Iranian power infrastructure. A complete closure of the route would cut global oil supply by nearly 7%. Most Saudi oil exports would struggle to leave the region. This would add to the existing disruption in the Gulf, where the war has already reduced global oil shipments by around 10%.

In their statement, the Houthis' armed forces declared "a maritime embargo against the criminal Saudi enemy, based on the equation of 'an eye for an eye', effective immediately" in response to what they called "an unjust and oppressive siege" imposed on Yemen by the Saudis.

Diplomatic efforts continued alongside the military escalation. A senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire. The proposal aims to save the interim agreement, which was intended to lead to a permanent settlement of the war that started on February 28 with U.S.-Israeli attacks on Iran. Neither Iran's Foreign Ministry nor the official shared further details about the proposed ceasefire.

Two Pakistani government sources said Iranian Interior Minister Eskandar Momeni had requested Pakistan to restart its mediation efforts. Momeni later arrived in Islamabad for additional discussions on the conflict.

The diplomatic push followed another night of military action. The United States carried out fresh strikes on Iranian cities, while Iran's Revolutionary Guards launched attacks on U.S. military assets across the region. U.S. Central Command confirmed on Monday afternoon that another round of strikes on Iran had begun.

President Donald Trump defended the latest military action as pressure increased at home over rising gasoline prices since the conflict began and the disruption at the Strait of Hormuz. Trump wrote on Truth Social, "Every time Iran kills an American Soldier, they will pay for that killing many times over! This directive has been passed on to Secretary of War, Pete Hegseth, Chairman of the Joint Chiefs of Staff, Daniel Caine, and every Leader in the Military."

The war has killed thousands of people, mainly in Iran and Lebanon. Israeli forces continue to occupy parts of Lebanon following attacks by Hezbollah, which said it acted in support of Tehran. Lebanese President Joseph Aoun is scheduled to meet President Trump at the White House on Tuesday. He plans to present a proposal to disarm Hezbollah and secure the withdrawal of Israeli troops from Lebanon.

Israel also continues military operations in Gaza after nearly two years of war that began following Hamas' attack on southern Israel on October 7, 2023. Hamas announced on Monday that it had appointed top negotiator Khalil Al-Hayya as its overall leader. An analyst said the appointment could signal a tougher approach toward international demands for the group to disarm.

The Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers exploded after attempting to pass through the Strait of Hormuz using what it described as an "unsafe" route. A day earlier, the IRGC had reported that two ships were involved in an "accident" in the same area. It remains unclear whether both incidents involved the same vessels. Reuters could not independently verify the claim. The IRGC did not identify the ships or report any casualties.

In another incident, the United Kingdom Maritime Trade Operations agency said an unknown projectile struck a vessel off the coast of Oman, near the Strait of Hormuz.

Inside Iran, explosions were reported in Tabriz, Chabahar, Konarak, Bandar Mahshahr and Bandar Imam Khomeini. Iran's state news agency IRNA said one person died and several others suffered injuries in an explosion southwest of Tabriz.

The IRGC also claimed it had launched ballistic missile attacks targeting U.S. aircraft at Jordan's Aqaba airport. It said the strikes also targeted military assets at Kuwait's Al-Adiri camp, Ali Al Salem Air Base and positions in Syria. Sirens sounded across Bahrain throughout Monday. Early on Tuesday, Kuwait's army said its air defence systems intercepted another wave of Iranian drones.