The Organisation of Islamic Cooperation condemned what it called Houthi attacks on Makkah and the Madinah region, calling them “heinous attacks” intended to “terrorise civilians” and violate the sanctity of holy sites and mosques, according to Al Jazeera.

Saudi air defences intercepted and destroyed a drone said to be launched by Yemen’s Houthi group near Makkah early on Wednesday, according to the Saudi-led coalition.

Coalition spokesman Turki al-Malki said the drone was intercepted around 6:50pm local time (2050 PKT) Tuesday before entering restricted airspace, with its wreckage falling south of the city.

Al-Malki described the incident as the Houthis’ second attempt to target Mecca, citing a ballistic missile launched toward the city on July 27, 2017.

He said the security of the Two Holy Mosques and pilgrims was a “red line,” vowing that the coalition would take measures to deter further attacks.

The incident came a day after the coalition said 13 civilians were injured in missile and drone attacks by the Houthis on Khamis Mushait, Abha and Taif, with seven homes and two vehicles damaged.

Read: ‘No longer managing’ Iranian threat, US is ‘ending it’: Bessent

Confrontations between Yemen’s internationally recognised government’s forces and the Houthis have escalated since early July following years of relative calm.

The country has been engulfed in war since the Houthis seized the capital Sanaa and several provinces in 2014 before a Saudi-led Arab coalition intervened in 2015 in support of the government.

US Treasury chief says Washington waging ‘greatest economic isolation campaign’ on Iran

US Treasury Secretary Scott Bessent said Tuesday that Washington is carrying out what he called the “greatest economic isolation campaign” against Iran and its enablers, arguing that the pressure is taking a growing toll on the Iranian economy.

“The strength of our economy has allowed the United States to wage the greatest economic isolation campaign in history against the Islamic Republic of Iran and its enablers,” Bessent said in opening remarks before the House Financial Services Committee. The committee held its annual hearing with the Treasury secretary on the state of the international financial system.

Bessent said President Donald Trump had taken action against Iran that previous administrations had deferred.

“Under his leadership, America is no longer managing the Iranian threat; we are ending it,” he said, adding that US economic strength was allowing Washington to exert pressure “from a position of strength.”

Bessent later said Iran’s economy was in “dire straits,” citing what he described as a collapse in the currency, surging inflation and long lines for gasoline.

“We have seen the currency collapse, we have seen inflation through the roof,” he said, claiming that Iranians were facing three- to four-hour gasoline lines because the country had to import fuel.

Bessent attributed the pressure to a combination of the US blockade on Iran and Operation Economic Outcast, a Treasury campaign launched in August to target Iran’s financial connections and entities accused of helping Tehran evade US sanctions.

“Economic Outcast is possible because of the blockade,” he said, adding that Treasury had spent months mapping nodes in payment networks used by Iran.

Treasury launched Operation Economic Outcast on August 24, saying its aim was to sever financial channels used by Iran to sell oil, evade sanctions and generate revenue.

Bessent also said Washington would intensify enforcement against entities accused of facilitating Iranian trade and helping Tehran circumvent sanctions.

He said measures targeting such facilitators would “start biting” on September 23 and would be fully enforced.

“We know, for those of you who are enabling the regime, you know who you are, we know who you are,” Bessent said, adding that Treasury would exercise its sanctions authorities “very vigorously.”

Bessent said the UAE had announced steps to cut financial transactions and trade with Iran. He also said Treasury had sanctioned branches of an Egyptian bank in Dubai that transferred more than $1.8 billion to Iran since 2025.

“With China, we have had some very good private discussions,” Bessent said, adding that he expected them to continue when he meets Chinese Vice Minister Liao Min this weekend and during Chinese President Xi Jinping’s planned spring state visit.

US House passes Iran war powers resolution

The US House of Representatives passed a war powers resolution Tuesday directing President Donald Trump to remove American forces from hostilities with Iran.

The lower chamber approved H. Con. Res. 93 by a vote of 220-204.

Seven Republicans voted in favour of the measure, which was sponsored by Democratic Rep. Seth Moulton.

It marked the third time the House had approved a similar war powers resolution.

Representative Gregory Meeks, the ranking Democrat on the House Foreign Affairs Committee, criticised the Trump administration’s military campaign against Iran after the House passed the resolution.

Meeks said the US has been involved in the conflict for nearly 200 days and argued that the administration has failed to achieve its stated objectives.

He cited higher gas prices and mortgage rates, inflation, billions of dollars in government spending, and US military casualties as costs of the conflict. So far, 19 US service members have been killed and more than 750 have been wounded since the US and Israel launched strikes against Iran on February 28.

“This is now the third War Powers Resolution that has passed the House to end this war, including my own resolution, which passed both chambers. The president must end this failed war and appoint real diplomats, not real estate developers, to work multilaterally on a diplomatic solution that opens the Strait and reduces tensions,” he said.

Iran war costs $38 billion so far, could rise by up to $3 billion per month: US budget office

The US Congressional Budget Office (CBO) estimated on Tuesday that America’s war against Iran has cost the Department of Defence approximately $38.1 billion as of Aug. 1, with further months of conflict likely to add $2 billion to $3 billion each, depending on the intensity of hostilities.

In a letter to House Budget Committee Ranking Member Brendan Boyle, CBO Director Phillip Swagel said the figure covers the replacement of expended munitions and lost equipment, increased flying hours, fuel costs, and other operations tied to Operation Epic Fury, which began Feb. 28 with US-Israeli strikes on Iran.

Replacing munitions accounted for the largest share, $21.7 billion, including $13.1 billion for missile defence interceptors, the letter said. If hostilities stayed as low as in May and June, an extra month would cost $2 billion, but that figure would rise to $3 billion at July’s intensity levels, it added.

The conflict has pushed up global oil and fuel prices due to disruptions in the Strait of Hormuz, contributing to higher inflation and interest rate projections through 2027.

The CBO’s estimate is roughly 10% below the Administration’s supplemental funding request of $42.3 billion for directly related costs and below Defense Secretary Pete Hegseth’s July estimate of $37.5 billion through September, the letter said, citing differing methods and a lack of complete data from the Pentagon.