Persistent geopolitical instability surrounding the Strait of Hormuz has renewed the debate about Indo-Pacific energy security and the need to diversify supply sources. However, diversification alone may not eliminate strategic vulnerability, even with alternative suppliers beyond the Gulf for the Indo-Pacific region, because the challenge lies not only in where energy is sourced but also in the maritime networks through which it travels. 

Recent warnings from the Australian Food and Grocery Council highlight how geopolitical instability in the Middle East is already contributing to broader cost pressures across Australia’s supply chains, especially through increasing fuel and logistics costs, as an example of a region at the heart of the Indo-Pacific. 

The Indo-Pacific’s capacity to decrease its reliance on the Strait of Hormuz is limited not by geography but by a broader network of contested maritime chokepoints influenced by proxy conflicts, especially the Bab el-Mandeb corridor connecting the Red Sea and the Gulf of Aden. In the event of a disruption in Hormuz, states such as Australia, Japan, South Korea, and Thailand could theoretically turn to alternative suppliers in the Americas, Africa, or the Atlantic basin. 

However, diversifying suppliers does not necessarily reduce risk. Many of these alternative supply chains still rely on the same vulnerable maritime routes, exposing them to similar transportation and security dangers. For example, Bab Al-Mandeb (Red Sea gateway) continues to face significant disruptions from Yemen-based Houthi attacks. Meanwhile, Somali pirates have become more active due to the current regional crisis involving Iran, which raises risk premiums and causes delays in the Gulf of Aden. 

As a result, proxy warfare, rather than a formal state blockade, may also limit Indo-Pacific states’ ability to rely on alternative supplies. For example, non-state actors and proxy forces (especially in Yemen), along with regional instability, can disrupt the straits without owning them. Under these conditions, proxies can exert strategic influence over maritime corridors without officially controlling them. 

This indicates a shift in the international order where effective control of maritime corridors no longer requires sovereign ownership; disruption capability alone can achieve similar strategic results. Meanwhile, strategic geography links Hormuz and Bab el-Mandeb together; disruption in one can increase pressure on the other. 

Proxy maritime actors like Yemen-based Houthis disrupt the Red Sea, while Somali piracy networks remain a persistent risk that could increase costs and uncertainty for shipping transiting the Gulf of Aden. As a result, energy security diversification in the Indo-Pacific region is limited not by a lack of alternative suppliers but by the concentration of global maritime energy flows at politically contested chokepoints. Therefore, these contested chokepoints are truly a security dilemma for the Indo-Pacific’s states. 

The growing capacity of proxy actors and non-state groups to disrupt these corridors transforms maritime geography into a web of vulnerabilities, undermining the effectiveness of traditional diversification strategies. Therefore, the Indo-Pacific’s energy security strategy must consider proxy-driven disruptions within maritime chokepoint networks, rather than relying solely on supplier diversification as a resilience measure. 

To address this risk, the Australian Defense Force has participated in coalition-based maritime security operations in the Red Sea and Indian Ocean. However, its role has remained limited to multilateral frameworks rather than unilateral action. The escalating instability linked to Iran-related regional tensions and the widening insecurity from the Middle East to the Horn of Africa may increasingly pressure Australia, Japan, South Korea, and Thailand to reassess their strategic posture toward key maritime chokepoints, including the scope, depth, capacity, and autonomy of their future engagement. 

This is especially significant as Iran continues to violate the current ceasefire with the U.S. and is eyeing Bab el-Mandeb, the only chokepoint after Hormuz that connects Asia, the Middle East, and Europe with the purpose of inflicting damage on the global economy and achieve a more robust position in its negotiations with Washington. 

Unlike Australia and Thailand, countries like Japan and South Korea are highly vulnerable to these threats because they are consistently among the top liquid natural gas and crude oil importers worldwide. This has led Seoul and Tokyo to sign a strategic agreement to strengthen energy cooperation despite longstanding historical disputes. 

A collective security action may be necessary if Indo-Pacific countries are to ensure energy security and strengthen domestic resilience amid rising geopolitical instability and the growing prevalence of regionally based asymmetric warfare. State and non-state actors increasingly employ coercion, sabotage, proxy forces, and physical attacks against critical supply lines to undermine political stability and disrupt economic activity. Because global and regional energy markets, maritime trade routes, and supply chains are highly interconnected, disruptions in or around a single country can cascade across the broader region. Consequently, Indo-Pacific nations have a shared interest in strengthening collective maritime security. By working together to deter threats, reduce vulnerabilities, and secure access to vital energy resources, regional states can enhance their ability to withstand external shocks and preserve the economic and social stability upon which long-term resilience depends. 

Shad Sherko is an independent journalist and security analyst specializing in Middle Eastern defense policy, regional proxy dynamics, and cross-border insurgencies. His work focuses on contemporary security threats across the Middle East and beyond. The views of the author are his own. 

Proxy Wars Threaten Energy Security in the Indo-Pacific Amid Regional Turmoil in The Middle East was originally published on Global Security Review.

Current responses, ranging from US, UK, and Israeli airstrikes to maritime task forces, aim to degrade the Houthis’ operational capabilities. Except for recent American bombing efforts, they have fallen short of effectively neutralizing the group’s capacity to pose a critical threat to maritime trade in the Red Sea as well as the wider threat of destabilizing the region.

What it would truly take to dismantle the Houthi threat, in a sustainable and strategic manner, requires a multi-dimensional, coalition-led effort that combines kinetic force, strategic isolation, regional realignment, and political recalibration. Many of these key strategic components are still missing in the current response to the Houthis’ actions.

The Houthi Threat: Tactical Capabilities, Strategic Leverage

Beginning in 2023, the Houthis began escalating their attacks against civilian and military vessels in the Red Sea, the Bab el-Mandeb Strait, and even the Gulf of Aden—utilizing Iranian-supplied drones, cruise missiles, and unmanned suicide boats. These attacks achieved several objectives for the group and its backers in Tehran. First, the attacks successfully disrupted global shipping, raising insurance rates and negatively impacting Egypt’s Suez Canal, which saw a decrease of almost 60 percent of its annual revenue from $10.3 billion in 2023 to $4 billion in 2024. Second, the Houthis’ attacks provided a clear projection of Iranian deterrence without a confrontation with the US. Third, the attacks repositioned the Houthis as a pan-regional “resistance” actor, not merely a Yemeni faction.

Despite Israel’s effective strike on Yemen’s sea port of Hudaydah followed by another set of strikes a day later, including ones on the main airport in Sanaa, which probably prompted the Houthis to inform the US that they “don’t want to fight anymore,” the Houthi leadership still exists and their armed capabilities are far from degraded.

If anything is beneficial out of such ceasefire, it is only for the Houthis as it would ultimately allow them to reorganize their resistance and offensive capabilities. Furthermore, the Houthis’ obvious ballistic missile and drone capabilities pose a threat to Israel more than ever before.

The Inadequacy of Current Approaches

Western-led responses include airstrikes on Houthi launch sites, naval deployments like Operation Prosperity Guardian, and diplomatic pressure via the UN Security Council. Yet, these actions failed to produce long-term deterrence for four main reasons.

First, Arab states, especially Saudi Arabia, the United Arab Emirates (UAE), and Egypt, lack strategic unity regarding Yemen. Conflicting Arab views on how to engage the Houthi threat, along with differing opinions on the alignment of the US military response to the Houthis, are significantly limiting the effectiveness of the US efforts to degrade Houthi capabilities.

Second, Houthi adaptability and decentralized operations make targeting difficult. Houthi leadership, in several interviews, praised their unique structure and claimed it is different from that of Hamas and Hezbollah in terms of not relying on any communication technologies within the group and yet having a decentralized distribution in the mountains in Yemen.

Third, Iranian support continues uninterrupted through land and maritime smuggling. Reports from 2024 revealed that UN mechanisms failed to inspect most ships heading to Houthi-controlled ports.

Fourth, the proximity of civilian infrastructure to military targets limits the rules of engagement for Western forces. Furthermore, there is no insufficient political strategy to undercut Houthi legitimacy among Yemenis, and still, many of the Yemeni population appeal to the Houthi group. Based on the above, an effective strategy for neutralizing the Houthis’ capabilities requires escalation dominance across the military, economic, information, and political domains.

A Multi-Domain Campaign to Neutralize the Houthis

A shift to precision airstrikes by the United States was necessary, but more is needed. This includes high-value targeting of command-and-control (C2) nodes, drone operation sites, missile production sites, and technical assembly sites. Covert special operations strikes by Arab and American forces, to sabotage radar arrays, smuggling depots, and launchpads in areas like Al-Hudaydah and Sa’ada, is also needed.

Furthermore, border security cooperation from Oman is crucial in addition to placing an effective security cooperation framework with Eastern African states, where much of the Iranian weapons smuggling is taking place. Enforcement of naval dominance will occur through the establishment of exclusion zones in the Red Sea, supported by AEGIS destroyers and Gulf-based airpower.

Although the US Navy is taking the lead role in such functions, establishing a regional US-Arab naval cooperation is a key factor in eliminating the threats posed by the Houthis as well as further preventing the smuggling of weapons, missile components, and unmanned aerial vehicle (UAV) components to the Houthis via the sea. Cyber disruptions targeting the Houthis’ satellite navigation, drone-control networks, and internal communications is needed. This function is far more complex than it may appear, given that reports indicate that Russia supports the Houthis with targeting data.

Furthermore, it is also reported that the Houthi leadership coordinates directly with Chinese officials regarding safe passage for Chinese vessels. In addition to US sanctions against Chinese satellite and shipping firms, providing evidence that China’s technological support strengthens Houthi capabilities is needed.

Accordingly, effective US-Arab intelligence cooperation should be further enhanced to isolate Houthi access to foreign powers. This military approach must be continuous, not episodic, and paired with intelligence fusion centers involving the US, UAE, Saudi Arabia, and Egyptians.

Strategic Isolation of the Houthis from Iran

Without eliminating the Houthi connection to Tehran, no solution can succeed. This requires the interdiction of Islamic Revolutionary Guard Corps maritime routes, especially between the Bandar Abbas–Socotra–Horn of Africa corridor. Hence, the situation ultimately requires enhanced maritime domain awareness, including the use of satellites to ensure effective monitoring of vessels coming to Yemen, not to mention the essential need for regional security cooperation among all the nations surrounding these locations.

The financial isolation of the Houthis and associated members by pressuring banking entities and crypto exchanges that facilitate Iranian transfers to Houthis requires improvement. Continuously drying up the cash sources provided to the Houthis is a key factor in dismantling their operational capabilities. Additionally, increasing regional pressure on Oman to improve its border monitoring and security efforts is crucial for reducing overland routes used for arms and cash smuggling.

Overall, Iran’s support for the Houthis is part of its “ring of fire” doctrine. To dismantle this arc, the Houthis must be made a liability, not an asset, for Tehran.

Recalibrating the Regional Arab Response

Arab unity is a missing ingredient in the fight against the Houthis. A new Red Sea Defense Compact is required, comprising a joint command structure involving the US, UAE, Saudi Arabia, Egypt, Jordan, Bahrain, and, ultimately, Oman. Having a regional naval and airbase integration with a primary role for Egypt and Saudi Arabia would provide a forward-operating presence across the Red Sea. Given that Houthi disruption of Red Sea commerce and maritime passage directly threatens Egypt’s economic security, strategic re-engagement is particularly important. Such an arrangement would also create a strategic opportunity for a further deepening of US-Egypt defense cooperation and alignment of mutual regional interests.

The need for a Saudi-UAE reconciliation over Yemen’s future is essential, possibly via American mediation. Otherwise, even after neutralizing the Houthi threat, the region risks a politically unstable Yemen. If Arab states continue to act independently, they risk being played against each other, benefiting Iran and prolonging the conflict.

Dr. Mohamed ELDoh is a business development and consulting professional in the defense and security sector.

What It Takes to Neutralize the Houthi Threat was originally published on Global Security Review.