What happened
Yemen's Houthi rebels, backed by Iran, claimed on Saturday that they launched a missile strike on the Saudi city of Jizan, causing fires there. The attack came after Saudi Arabia carried out air strikes on Houthi targets in the Yemeni port of Hodeida and a nearby island on Friday. Saudi authorities issued emergency alerts for the Jizan province, but had no immediate comment on the claim.
Why it matters for the market
In a separate incident on Friday, the US military said it disabled a tanker in the Gulf of Oman that was attempting to evade the American blockade on Iranian ports. Navy Captain Tim Hawkins reported that the crew had ignored multiple warnings, and US forces fired into the ship's engine room, bringing it to a halt. This is the second commercial ship disabled by the US since the blockade was reimposed.
The escalation has kept oil prices volatile, with Brent crude briefly topping $100 a barrel earlier this week on fears of Red Sea shipping disruptions. However, prices fell back below $96 on Friday after two Chinese-chartered supertankers successfully passed through the Bab el-Mandeb Strait.
Meanwhile, diplomatic efforts continue. An Omani delegation arrived in Tehran for talks on the Strait of Hormuz, and the US and UK plan to hold a conference in London next week focused on the waterway. President Trump told reporters that negotiations with Iran are ongoing, but added that the US is 'locked and loaded' and ready to continue military action if necessary.
What traders should watch
This marks the first night in two weeks without fresh US or Iran strikes, as the region watches for further developments. The Houthis vowed retaliation for the Saudi bombings, signaling that tensions remain high despite the lull.
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