US clients Saudi Arabia, UAE fight proxy war in Yemen; Tehran takes bitcoin

(Originally published Jan. 2 in “What in the World“) What to do when friends fight?

Two staunch U.S. allies, Saudi Arabia and the United Arab Emirates, are fighting a proxy war in Yemen. The Saudis lead a coalition that supports Yemen’s internationally recognized government, which is based in Aden after Iran-backed Houthi rebels captured Yemen’s capital Sana’a in 2014. The UAE backs the Southern Transitional Council, which is ostensibly part of that coalition, but which in recent weeks has been seizing territory to carve out an independent southern state.

The U.S. sells weapons to both the Saudis and Emirates. And while the U.S. doesn’t ordinarily allow allies to re-gift their American military toys (except under special circumstances, like when they give them to a third U.S. ally and promise to buy new ones immediately afterwards), weapons are fungible: U.S. weapons in their arsenal leaves more Saudi Arabia and the UAE can ship to their allies in Yemen.

The Saudi-led coalition this week launched two airstrikes against a shipment of what said were weapons from the UAE to the STC in the port of Al Mukalla, east of Aden. The UAE says the shipment didn’t contain any weapons, but that it was withdrawing its troops from Yemen in response. The STC, which controls Yemen’s transport ministry, then closed Aden’s airport, saying the Saudis had imposed an air blockade. The Saudis said only flights to and from the UAE were blocked. This handy map shows how the UAE-backed STC has the upper hand in terms of territory in realizing its goal of creating a southern Arabian state.

A war between customers is good for business when your principal export to them is weapons. But this spat compromises their ability to pressure the Houthis, who’ve been harassing international shipping in the Red Sea with missile and drone strikes since Israel’s invasion of Gaza. If Yemen’s ruling coalition descends into civil war, it could strengthen the Houthis. On the other hand, if the STC is triumphant and its leader makes good on his threat to march on Sana’a, Houthis go bye-bye.

U.S. Secretary of State Marco Rubio has reportedly taken a break from the White House’s building Caribbean campaign to call the Saudis. And Iran, meanwhile, has announced that it will now accept cryptocurrency as payment for advanced weapons systems.

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