Iran Update Special Report, July 16, 2026

Key Points:

• Iran is attempting to deter U.S. strikes on its energy infrastructure by threatening Houthi attacks on shipping in the Bab al Mandeb Strait, with Houthis reportedly deploying missile and drone assets in the area awaiting orders.
• The Houthis have not closed the Bab al Mandeb to commercial shipping but continue to prevent Israeli vessels from transiting the strait, while threatening Saudi Arabia with drone and missile attacks if further attacked.
• The U.S. has conducted airstrikes on multiple Iranian inland and coastal targets, including missile test sites and IRGC bases, aiming to degrade Iranian defenses and maritime threat capabilities in the Strait of Hormuz.
• Iran has retaliated by launching drone and missile attacks on U.S. bases in Bahrain, Kuwait, and Jordan, with most attacks intercepted, while no recent Iranian attacks on vessels in the Strait of Hormuz have been observed.
• The IRGC is supplying Lebanese Hezbollah with advanced fiber-optic FPV drones and other weapons to attack Israeli forces, with Syrian forces recently seizing a large shipment of such weapons intended for Hezbollah, some possibly sourced from Russia and China.