What happens in Yemen can greatly exacerbate regional tensions. It also worries the West because of the threat of attacks emanating from the country as it becomes more unstable.
Western intelligence agencies consider AQAP the most dangerous branch of al-Qaeda because of its technical expertise and global reach, and the emergence of IS affiliates in Yemen is a serious concern.
The conflict between the Houthis and the elected government is also seen as part of a regional power struggle between Shia-ruled Iran and Sunni-ruled Saudi Arabia.
Gulf Arab states have accused Iran of backing the Houthis financially and militarily, though Iran has denied this, and they are themselves backers of President Hadi.
Yemen is strategically important because it sits on the Bab al-Mandab strait, a narrow waterway linking the Red Sea with the Gulf of Aden, through which much of the world's oil shipments pass.