Iran-backed fighters in Yemen and Iraq are reportedly working together to launch attacks on Gulf nations, according to regional officials. According to reports from The Associated Press, Yemen’s Houthi rebels helped Iraqi militias plan and execute a two-day drone attack on Saudi oil facilities in July. Saudi Arabia and the United States responded by bombing Iran-backed militias in Iraq, blaming them for the attacks, which were claimed by the Houthi rebels. This marks a new level of coordination between the Houthi rebels and Iraqi militias, according to officials. Iran has been supporting armed groups near Israel’s borders, but these groups suffered significant losses after the Hamas attack in Gaza on October 7, 2023. Israel’s military operations have affected both Palestinian militants and Lebanon’s Hezbollah, which is Iran’s most powerful ally. Regional officials and analysts suggest Iran is now using Iraqi militias and the Houthi rebels to threaten Saudi Arabia and other American allies in the Gulf. This strategy aims to increase the costs of the war launched by the U.S. and Israel in February. However, this approach is seen as risky, as Houthi attacks on Saudi oil facilities had previously threatened to reignite a full-scale war with the kingdom. Iraq has ordered militias to disarm by the end of the month, but powerful Iran-backed groups have refused to comply. A new American effort to economically isolate Iran could lead to further escalation. Officials say that Iran-backed groups in Yemen and Iraq are forming a "pincer movement," working together to pressure Gulf nations. The involvement of Houthi rebels in the Iraqi drone attack was confirmed by two Saudi officials, citing intelligence, and a senior Iraqi security official. They stated that Houthi representatives worked in an operations room managed by Iraqi militias. In response, Saudi Arabia and the U.S. carried out joint airstrikes that killed at least 20 Iraqi fighters, six Iranian advisers, and at least one Houthi official. The death of the Houthi official was confirmed by a Houthi representative and an Iraqi militia member. A U.S. military official expressed concern about the presence of Houthi fighters in Iraq and their ability to launch attacks on other countries, including Saudi Arabia. Meanwhile, two officials from the Popular Mobilization Forces (PMF), a group of militias integrated into Iraq’s security forces, denied involvement in the attack on Saudi Arabia and claimed the Houthi rebels were not operating under their authority. All the officials and the militia member spoke anonymously, as they were not authorized to comment publicly. The Houthi rebels did not respond to requests for comment.