An armed unmanned surface vessel, launched from Yemen, approached within "a couple of miles" of U.S. Navy and commercial vessels in the Red Sea, detonating just hours after a final warning from the White House to the Iran-backed militia to cease attacks or face possible military action.

"The contract values reflect that the contracted company will benefit from the subsequent sale of scrap steel, iron, and non-ferrous metal ores," said a spokesman for the Naval Sea Systems Command.