WRAPUP 3-Missile fired from Yemen as Israel and US target Iran

By Menna AlaaElDin, Nayera Abdallah and Humeyra Pamuk

CAIRO/PARIS, March 28 (Reuters) - Israel said on Saturday it had detected a missile fired from Yemen, the first since the Iran war began, while Secretary of State Marco Rubio said the U.S. expected to conclude military operations within weeks, not months.

The war, now in its fifth week, has spread across the Middle East, killing thousands and causing the biggest disruption ever to energy supplies, hitting the global economy and fuelling inflation fears.

Israel said it intercepted the missile from Yemen, but few details were immediately available, including who fired it and at what target.

The announcement came hours after Iran-aligned Houthis said they were prepared to act if what the group called an escalation against Iran and the "Axis of Resistance" continued in the war launched by the U.S. and Israel on February 28.

RISK OF BROADENING WAR

Houthi involvement in the war would risk broadening and prolonging the conflict, given their ability to strike targets far beyond Yemen and disrupt shipping lanes around the Arabian Peninsula and the Red Sea, which they had done in support of Hamas in Gaza after October 7, 2023.

If the Houthis open a new front in the conflict, one obvious target would be the Bab al-Mandab Strait off the coast of Yemen, a key shipping choke point that controls sea ​traffic towards the Suez Canal, after Iran effectively shut the critical Strait of Hormuz.

Rubio told his Group of Seven counterparts in France that European and Asian countries that benefit from trade through the narrow Strait of Hormuz - a conduit for a fifth of global oil and natural gas supplies - should contribute to efforts to secure free passage.

The war has driven a wedge between the U.S. and its traditional allies, who have stayed on the sidelines. President Donald Trump said this lack of support had implications for NATO, the West's most important alliance.

"We would have always been there for them, but now, based on their actions, I guess we don't have to be, do we?" Trump told an investment forum in Miami on Friday. "Why would we be there for them if they're not there for us? They weren't there for us."

The charter underlying the North Atlantic Treaty Organization, which has long been led by the U.S., says an attack on one member is an attack on all, requiring them to support each other.

Rubio said Washington was "on or ahead of schedule in that operation, and expect to conclude it at the appropriate time here - a matter of weeks, not months".

While he said the U.S. could achieve its aims without ground troops, he acknowledged it was deploying some to the region "to give the president maximum optionality and maximum opportunity to adjust the contingencies, should they emerge".

Washington has dispatched two contingents of thousands of Marines to the region, the first of which is due to arrive in coming days on a huge amphibious assault ship. The Pentagon is also expected to deploy thousands of elite airborne soldiers.

The deployments have raised concerns that the war could turn into a prolonged ground battle.

MORE STRIKES WHILE TRUMP SPEAKS OF NEGOTIATIONS

Stock markets tumbled sharply on Friday on fears the conflict will drag on, while the Brent crude oil benchmark LCOc1 topped $112, up more than 50% since the war began.

In the U.S., where Trump is politically vulnerable to rising fuel prices, diesel in California hit a record average high of $7.17 a gallon, the American Automobile Association said.

Trump has appeared eager to wind down the unpopular war, emphasising this week what he called productive negotiations aimed at a diplomatic solution - despite repeated assertions from Tehran that no such talks have begun. On Thursday, Trump extended a deadline by 10 days for Iran to reopen the Strait of Hormuz or face attacks against its civilian energy grid.

While those strikes were on hold, missiles and drones continued to rain down across the region.

Iran launched multiple waves of missiles at Israel overnight, killing one and causing several impacts in the Tel Aviv area from cluster munitions and debris from intercepted missiles. Iran has repeatedly fired warheads at Israel that carry submunitions - dispersing smaller explosives over a wide area that are difficult to intercept.

An Iranian attack on an air base in Saudi Arabia wounded 12 U.S. military personnel, two seriously, a U.S. official told Reuters on Friday, as drones and missiles continued to strike around the Gulf.

The United Arab Emirates and Bahrain reported missile attacks early on Saturday, with five people injured and fires reported after a missile was intercepted near Abu Dhabi's Khalifa Port, one of the Gulf's main deepwater container ports.

At least five people were killed and seven injured after a U.S.-Israeli attack on a residential unit in Iran's northwestern city of Zanjan, Iranian media reported early on Saturday. The Iran University of Science and Technology in Tehran was also struck, media reported.