Since the 1979 Islamic Revolution, Iran has strategically employed revolutionary politics to amplify its power and influence throughout the Middle East. A cornerstone of this strategy has been the formation of the Axis of Resistance, which emerged in the mid-2000s and includes both state and non-state actors. As the war in Gaza enters its fourth month, Iran has reasserted itself as a leading advocate for the Palestinian cause, revitalizing the Axis of Resistance in the process. This research delves into the dynamics between Iran and its proxies against the backdrop of the Gaza conflict, with a specific focus on the relationship between the Islamic Republic and the Houthis. It seeks to understand how an aspiring regional hegemon leverages local proxies to advance its foreign policy objectives and examines the limitations of such alliances. The Houthis, a relatively recent addition to the Axis, have swiftly emerged as a significant regional player, evidenced by recent developments in the Red Sea region. While maintaining their autonomy from Tehran, the Houthi attacks in the Red Sea align with their strategic calculations aimed at bolstering their leverage in the ongoing negotiations concerning Yemen's future (Thamer and Akkas 2024). Concurrently, by aligning themselves with the Resistance Axis, they bolster their own regional standing while furthering Iranian interests, affording Tehran plausible deniability for any actions attributed to Iran (Zalayat 2021, O’Connor 2021). How does Iran exploit its ties with the Houthis and capitalize on regional developments to expand its influence? Moreover, what implications do these developments hold for Iran’s involvement in Gaza, and where do the Houthis fit within the broader Axis of Resistance? Employing proxy theory, this paper analyzes the evolving relationship between Iran and the Houthis in recent years, assesses the Yemeni rebels’ position within the Axis, and examines recent tensions in the Red Sea in relation to the Gaza conflict. The central thesis statement of this paper asserts that a regional actor often utilizes its proxy relationship with local entities to advance its foreign policy goals. Yet, in this particular case this dynamic is mutually beneficial, and the Houthis wield significant agency in their dealings with Iran. By shedding light on the evolution of a local actor into a regional revolutionary force, this paper elucidates the impact on the regional power balance and the transforming dynamics between the sponsor state and its proxies.