As the Trump administration begins its term with a whirlwind of activity, the Middle East occupies a central place in its new foreign policy.

After rescinding a series of sanctions imposed by former president Joe Biden on a group of Israeli settlers, President Donald Trump announced on Wednesday the Yemeni Houthis would be re-designated as terrorists.

Former President Joe Biden had decided to lift the designation from the group to facilitate the delivery of humanitarian aid to Yemeni civilians through UN organizations and other groups.

The move against the Houthis was welcomed not only by Israel, which has been enduring attacks from the Iranian terror proxy for over a year, but also by the United Arab Emirates and Saudi Arabia.

Shortly before the announcement, Trump held his first phone call with a foreign leader since retaking office, calling Saudi Crown Prince Mohammed bin Salman (MBS) in another signal of the importance of the Middle East for the new administration.

MBS told Trump his country would increase its U.S. investments by $600 million over the duration of the new administration’s term in office, according to the Saudi state news agency.

The two leaders most likely discussed the defense agreement between the U.S. and Saudi Arabia that has been in the works for several years, which could also include an expansion of the Abraham Accords through a peace agreement between Israel and the Saudi Kingdom.

When the group started attacking Israel in declared support of Hamas in Oct. 2023, it also began launching strikes on commercial shipping off its Red Sea coast, attacking ships purportedly connected to Israel, but also to Saudi Arabia and the UAE.

The order also instructed the State Department and USAID to review all the aid flowing to Yemen with the goal of canceling any of it that could benefit the Houthi terrorists.