EXCLUSIVE: Andy Burnham is considering requests from Saudi Arabia for a range of military support to counter attacks from the Houthis, as the UK fears a “catastrophic” economic hit from a new front in the Iran war. The Saudi asks include operational support for its military to repel the Houthis’ push along the Red Sea coast toward the Bab el-Mandeb Strait, a key trade chokepoint, and help to defend against strikes on its oil infrastructure, sources tell Bloomberg. Burnham has agreed to send British military advisers to Saudi Arabia in response to the requests, sources say. It’s unclear whether he’s willing to approve the other asks, which haven’t been disclosed by the UK government. The Foreign Office and MoD declined to answer questions. Burnham is facing one of his first major foreign policy and economic dilemmas since he became PM. Britain is determined not to get drawn into the conflict, not least because it didn’t support Trump’s war on Iran. Yet the crisis poses serious challenges ahead of next month’s budget. Burnham has been advised by his officials that if the Houthis take control of the Bab el-Mandeb Strait it will have a “catastrophic” impact on international shipping and provide another hit to the global economy through a further spike in the oil price and inflation, the sources said. The Houthi attacks have sent Brent crude toward $110 a barrel. Gilts extended a drop today as money markets added to bets on Bank of England interest rate rises off the back of inflation fears. Traders now fully price five quarter-point BoE hikes by the end of 2027, an outcome that would badly complicate the PM’s key pledge to reduce the cost-of-living. The Treasury is also worried that the recent escalation is taking place as the OBR prepares its economic and fiscal forecasts for the budget. John Healey had been hoping for a market reprieve during the assessment window. Instead it’s going further in the wrong direction and potentially leaving the chancellor with even more of a fiscal hole. Under Rishi Sunak the UK hit Houthi targets in Yemen to combat disruption in the Red Sea. Under Keir Starmer it deployed Sky Sabre air defences to help Riyadh.