US-Houthi De-escalation: Dimensions and Implications The recent understandings between the United States and Houthis to de-escalate tensions mark a significant shift in Washington’s approach toward a group, which was previously designated as a terrorist organization. This shift involves adopting negotiation, mediated by Oman, whose diplomatic efforts are considered acceptable by Iran and its affiliated militias in the region, as a means to reach agreement. While these understandings may carry politically negative implications—most notably, as some analysts suggest, an implicit recognition of Houthis that could undermine the legitimacy of Yemen’s internationally recognized government—they also signal Washington’s intent to contain maritime threats at the lowest military cost. This approach aligns with the current U.S. administration’s focus on other priorities and issues. Although the recent understandings present an opportunity for de-escalation, they remain fragile due to the absence of binding guarantees. Given the complexities of the regional political landscape, the risk of these understandings collapsing at any moment remains a distinct possibility. Furthermore, the Houthis’ close ties to Iran mean that the sustainability of the agreement is likely to hinge on the outcome of Washington’s ongoing nuclear negotiations with Tehran. This paper explores the context of these understandings and analyzes their implications at the local, regional, and international levels. It also examines potential consequences and outlines likely future scenarios. https://abaadstudies.org/en/policy-analysis/topic/60158