oil

Argentina gives UK two weeks to cease operations or face maritime court action.

Argentinian President Javier Milei has threatened the British government with legal action unless it stops an oil project off the disputed Falkland Islands, the British-administered territory over which Buenos Aires claims sovereignty.

Milei gave the United Kingdom a two-week ultimatum on Monday evening, saying it must halt all work on the Sea Lion oil project or Argentina will ask the International Tribunal for the Law of the Sea, a maritime court in Hamburg, Germany, to order a stop to the project.

He called the operations “the illegal plundering of our resources” and declared “Argentina will not stand idly by” as the UK causes “irreversible and irreparable” damage.

The companies developing the project, Israel’s Navitas and Britain’s Rockhopper, have shrugged off Argentina’s threats, insisting they have valid exploration licences issued by the UK.

The tribunal, an independent court established under the 1982 UN Convention on the Law of the Sea, can issue legally binding emergency orders. But even if it ordered the UK to halt the project, it has no means of forcing the government to comply.

The UK rejects Argentina’s sovereignty claim, arguing that the islanders have the right to determine their own future and develop their natural resources. In a referendum in 2013, residents of the Falklands voted overwhelmingly to remain a British overseas territory. Argentina says the islands were populated illegally.

Milei’s administration has already taken legal action against the project authorised by Britain, arguing it violates a United Nations resolution calling for both sides to desist from unilateral actions in the islands until their dispute is resolved.

Buenos Aires has doubled down on its claim over the Falklands since United States President Donald Trump said Washington was open to reviewing its historically neutral stance on the territory.

The British government for its part has said it stands behind the businesses operating near the Falklands.

The dispute over the Falkland Islands led to a war between Britain and Argentina in 1982. It killed 649 Argentinian soldiers, 255 British soldiers and three islanders after Argentina invaded the archipelago that year.

International crude oil prices climbed further on Tuesday morning amid uncertainty over US-Iran talks, as hopes of reopening the Strait of Hormuz, a waterway crucial to oil shipments, faded.

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Hopes that Middle East tensions would ease were dashed at the weekend when Donald Trump rejected Iran’s offer of a seven-day truce.

Mediators are working with the US and Iran on a deal to end the fighting and reopen the Strait of Hormuz, officials told the Associated Press. The disruption to shipping through the waterway has affected global trade and added to inflation.

Iran has proposed reopening the strait if the US lifts its blockade of Iranian ports and eases sanctions, among other conditions. Washington says any deal must also address Iran’s nuclear programme. Officials said the two sides disagree over the timing of concessions and who should act first.

Brent crude, the international benchmark, gained nearly 2% and traded above $107 a barrel early Tuesday, well above its price of roughly $72 a barrel in late February before the Iran war.

US West Texas Intermediate crude rose 1.8% to more than $94 a barrel.

High oil prices have renewed inflation concerns and expectations that the Federal Reserve will raise interest rates again next month. Government bond prices have fallen as a result, pushing yields to multi-year highs.

The benchmark 10-year US Treasury yield rose above 5.27% on Monday, its highest level in 19 years, following a rise of nearly half a percentage point through September. Yields rise when bond prices fall, and this month’s sell-off is the heaviest in two years.

The US two-year yield has risen even further, climbing by more than 0.57 percentage points this month to nearly 5%. In Europe, Germany’s benchmark 10-year bond yield reached 3.62%, its highest level since June 2009.

Government bond yields help set borrowing costs across the economy, from mortgages to company loans. As yields rise, governments, businesses and households face higher costs, while stocks can become less attractive to investors.

In Japan, a 40-year government bond auction drew its strongest demand since 2020 as relatively high yields attracted investors, according to Bloomberg.

Stock markets also struggled after all three main Wall Street indexes fell on Monday.

In Europe, Tuesday’s open showed a mixed reaction.

The Euro Stoxx 50 was flat in early trading while the broader pan-European Stoxx 600 traded 0.2% higher.

The UK’s FTSE 100, Italy’s FTSE MIB, Spain’s IBEX 35 and the Netherlands’ AEX all traded between 0.1% and 0.2% higher than their Monday close.

However, France’s CAC 40 and Germany’s DAX 30 both dropped about 0.5%.

Over in Asia, Japan’s Nikkei 225 lost 1.3%, South Korea’s Kospi declined 0.9% and Hong Kong’s Hang Seng dropped 0.6%. Hong Kong-traded shares of Shein fell 11.7% after the online retailer reported a 67% fall in quarterly adjusted net profit from a year earlier.

The Shanghai Composite was little changed following a report from China’s official Xinhua News Agency late Monday that its State Council had discussed ways to make economic policies more effective.

Australia’s S&P/ASX 200 was down more than 0.1% by early morning in Europe.

Australia’s central bank raised its key interest rate by 0.25 percentage points to 4.6% on Tuesday, a 15-year high, as rising oil prices fuelled inflation. The Reserve Bank said higher fuel costs were pushing up prices across the economy, while growth and inflation had been stronger than expected.

The US dollar edged up to 157.42 Japanese yen from 157.39 yen. The euro fell to $1.1362 from $1.1371.

Gold remained near $4,160 after steep losses on Monday, as expectations of further rate rises weighed on the metal, which pays no interest.

Investors are also awaiting key US inflation and jobs data this week that could influence the Fed’s next decision. Markets are pricing in another rate rise at the end of October.

Additional sources • AP

Gold hits seven-week low; silver follows suit and records a nearly 5 percent loss.

Gold prices are falling as concerns of rising fuel prices stoke inflation worries on the back of the war between the United States and Iran.

Spot gold prices fell by 3.3 percent to reach a more than seven-week low at $4,146.51 per ounce on Monday.

Rising oil prices, a higher US dollar and Treasury yields stoked inflation concerns, creating further headwinds for the metal.

This is the lowest level for gold values since August 5. US gold futures also fell by 3.3 percent to $4,178.40.

Although gold is traditionally considered an inflation hedge, higher interest rates dent ⁠its appeal as investors prefer yield-bearing assets.

“There might be no notable direct impact on regular people due to that. However, investors who had turned to gold will see a hit, especially under the current high inflation rates,” Sherif Othman, CEO of the Maryland-based Poise Investment Advisors, told Al Jazeera.

“Gold does not yield interest, so when Treasury yields go up, investors turn away from gold, impacting its value”, he added.

The Fed lifted benchmark rates by a quarter ⁠percentage point earlier this month and flagged that at least one more hike is likely in the coming months.

The US dollar was steady near a two-month high, and oil prices spiked about 3 percent as US President Donald Trump rejected an Iranian offer ⁠to resolve the conflict and reopen the Strait of Hormuz.

Such factors triggered several policymakers to warn that inflation risks remain elevated and that interest rates may need to rise, with Cleveland Fed President Beth Hammack among the latest officials to reiterate that view.

Higher Treasury yields and the US dollar are “creating a perfect storm to push the metals prices sharply lower,” according to Jim Wyckoff, a market analyst at American Gold Exchange.

Spot silver also fell by 4.7 percent to $61.27 per ounce, platinum declined 2.9 percent to $1,726.30 and palladium lost 4.4 percent to $1,211.45.

JUNEAU, Alaska — One of the most biting insults in Alaska politics is to be accused of being aligned with the “Lower 48,” code for candidates taking marching orders from powerful forces in the contiguous United States rather than sticking up for Alaskans.

It’s a central theme of the Alaska’s U.S. Senate race, one of a handful expected to determine control of the chamber in the November elections.

Republican Sen. Dan Sullivan’s campaign has made it a key attack line against Democrat Mary Peltola, a former congresswoman. He lumps her in with “Lower 48 liberals” who have opposed expanded oil and gas drilling in a state that has relied heavily on that industry for decades.

Peltola, an Alaska Native, has countered that she “took on” then-President Biden, a fellow Democrat, to help win approval in 2023 of the huge Willow oil project, which environmentalists strongly opposed. She also says she will “take on anyone, including Democrats — anyone in the Lower 48 who doesn’t understand what Alaska needs.”

The pejorative label reflects a mystique about Alaska, which outsiders often refer to as “The Last Frontier.” A state for less than 70 years, Alaska is renowned for its natural beauty, wildlife and vast landscapes. Its rural nature — isolated from the rest of the country and with many of its communities accessible only by air or water — breeds a self-reliance. It’s a place where many residents hunt and fish to fill their freezers for winter and take pride in their independence.

The two major Senate campaigns and some third-party groups have leaned into that sentiment — that Alaska is different — and cast their candidates as authentic voices for Alaskans.

“We love the persona Alaska is a tough place to live,” said Republican Andrew Halcro, a political podcast host and former state lawmaker who has lived in the state nearly all his life.

Abundance of oil and other resources has created friction with federal government

Alaska, rich in natural resources, has long had a love-hate relationship with the federal government, which owns about 60% of the state’s land. That relationship has been especially strained under Democratic presidential administrations that have sought to restrict logging, mining and the availability of areas for oil and gas development over environmental concerns.

Policies can shift dramatically from one administration to the next.

The Democratic Obama and Biden administrations banned leasing on roughly half the National Petroleum Reserve-Alaska, which is home to wildlife such as caribou and polar bears and provides habitat for millions of migrating birds. Republican President Trump’s administration has rolled back those and other restrictions as part of a broader push for expanded oil and gas development in Alaska. The administration also is supporting lease sales in the Arctic National Wildlife Refuge.

The state also has bristled at Democratic efforts to stifle road building and logging in areas such as the Tongass National Forest, a temperate rainforest in southeast Alaska. That dispute dates to the Clinton administration.

Alaska’s share of royalty revenue from oil and minerals on federal land has been another ongoing source of tension. Some lawmakers say the state was promised a larger share at statehood and that the federal government has failed to uphold its end of the deal.

While oil production is a fraction of what it was at its peak in the late 1980s and has fallen in recent years, political leaders have pointed to signs of a turnaround. They cite in part the strong interest from major companies that snatched up leases in a sale earlier this year for the petroleum reserve, home to the Willow project.

Alaska communities have been hit hard by spikes in fuel prices caused by the Iran war. That is especially true for remote communities that must have their fuel flown in or delivered by barge before the rivers ice over.

Oil development is the top issue in this year’s election for Darryl Hugo, who lives in the small North Slope community of Anaktuvuk Pass. He is backing Sullivan and notes that revenue from oil development is largely responsible for his town’s health clinic, school, police and fire departments and water system.

“My region’s economy depends on oil,” he said via a messaging app.

Candidates are seen as trying to stake claim as ‘the real spokesperson for the real Alaska’

Robert Sewell, an independent from the Juneau area, said he sees the “Lower 48” taunts and Peltola trying to distance herself from national Democrats as examples of the candidates “fighting to establish who is the real spokesperson for the real Alaska.”

He also likens it a bit to the schoolyard jeer, “I know you are, but what am I?”

Peltola, during her unsuccessful 2024 congressional reelection campaign, refused to endorse Democratic presidential nominee Kamala Harris and said she would not vote for Trump. This year, before Alaska’s August primary, Harris sent a fundraising appeal that offered support of Peltola.

In response, Peltola’s campaign told reporters that she “isn’t seeking endorsements from anyone from the Lower 48.”

In videos highlighting her backing of the Willow oil project, Peltola said she will work with Trump, who handily carried Alaska each of the three times he has run, to advance more oil and gas projects.

“I took on Joe Biden to secure the largest development project in decades,” she said in one video on social media. “And I’ll work with Donald Trump on more.”

Sewell, a Peltola supporter, said he does not begrudge that position. He said he does not think “for one moment that she likes Trump or Trump’s agendas” on other issues.

‘Lower 48’ jabs fill social media and airwaves, but do voters care?

Peltola, who is Yup’ik, is among the roughly 43% of Alaskans born in the state. She grew up fishing on the Kuskokwim River in western Alaska and prominently displays fishing photos on her website. Her campaign slogan, “Fish, Family, Freedom,” is intended to appeal to what she believes are Alaskans’ shared values.

Sullivan, originally from Ohio, came to Alaska in the late 1990s when he was in his early 30s. Now a retired Marine, he served as Alaska attorney general and natural resources commissioner, and was an assistant secretary of state in President George W. Bush’s administration.

Sullivan spokesperson Nate Adams said that for the senator, “being an Alaskan means loving this state, fighting everyday for his fellow Alaskans and making sure Alaskans, not Lower 48 liberals, decide our future.”

The SLF PAC, which supports a Republican Senate majority, has been keying in on that theme. In one of its ads, a speaker says of Peltola, “They dress her up, throw her out on a stream somewhere, make her look like an Alaskan.” Another says: “Mary Peltola sounds like Alaska, but toes a different line in Washington, D.C.”

Peltola’s campaign said Alaskans “won’t be fooled by mudslinging ads.” In a statement, her campaign sought to link Sullivan with “Lower 48 special interest donors.”

Halcro, the former lawmaker and podcaster, said Alaskans have been inundated with such ads and flyers, but he is not sure the messaging over which candidate aligns less with the “Lower 48” is one voters want to hear this year.

“It’s all of this stuff just to make us angry at a time where we really genuinely, genuinely just need stability,” he said. “We just need to elect somebody who’s not going to break anything.”

Bohrer writes for the Associated Press.

France is sending military assistance to Saudi Arabia to protect the Yanbu oil facilities as the Kingdom battles the Iran-backed Houthi rebels of Yemen. The move comes amid growing concerns about the remaining flow of oil from the region, which France, as well as the rest of Europe, relies upon heavily.

In a live television interview Thursday night Paris time, French President Emmanuel Macron said he was sending an unspecified number of troops and equipment to the Saudi Arabia to protect the Yanbu energy hub, located on the Red Sea.

“This is the agreement we have finalized ​with ⁠the Saudis,” Macron explained. “We are going to send ⁠military resources, that is to ​say, soldiers, radar systems and defense ⁠systems, to protect this site — ⁠not ​to get us involved in any conflicts, but to ⁠protect this site.”

The French leader did not elaborate on the exact equipment he would send, how many troops, or when they would arrive. Nor did he address what would happen if French personnel were killed or injured or equipment damaged or destroyed. We have reached out to the French Embassy for further details. Based on his mention of radars and seeing that the threat to Saudi oil infrastructure is almost entirely from aerial attacks from drones and missiles, these will likely be air defense forces.

The decision was prompted by repeated Houthi missile and drone attacks as well as suspected strikes from Iranian-backed militias in Iraq on Saudi Arabia’s oil infrastructure. Yanbu in particular is a key installation. As we have explained in the past, Saudi Arabia has diverted millions of barrels of oil per day through pipelines to its Yanbu port on the Red Sea in an effort to minimize the energy shortages due to the hostilities around the Persian Gulf.

Before Macron’s announcement on Thursday, the Houthis claimed they had carried out two more waves of attacks on Saudi targets, including one on the Saudi Aramco facility in Yanbu, “using a number of ballistic and cruise missiles, as well as drones.”

In addition, the Houthis claimed they struck Riyadh.

There was no immediate Saudi confirmation of an attack on the Saudi capital. Saudi civil defense did not issue an emergency alert for Riyadh on Thursday.

Earlier in the day, the Houthis said they struck “enemy command and control centers, operations rooms, weapon depots, missile launch platforms, and military sites belonging to Saudi-led enemy formations in Jizan,” a Red Sea port city.

“The Saudi-led military coalition in Yemen said on Thursday that it had shot down six ballistic missiles fired by the Iran-backed Houthi militia, in what appeared to be one of the largest cross-border attacks by the group since its conflict with Saudi Arabia [flared back up],” The New York Times reported.

The missiles were aimed at the Saudi cities of Taif and Yanbu, Maj. Gen. Turki al-Maliki, a spokesman for the Saudi-led coalition, claimed on X. “Escalations and violations by the terrorist Houthi militia will be dealt with firmly,” he stated, without specifying where the missiles were intercepted.

TWZ cannot independently verify any of these claims.

Today’s attacks are the latest in the escalating conflict between the Houthis and Saudi Arabia. Earlier this year, the Houthis imposed a blockade on the Bab al-Mandab Strait (BAM) and began striking Saudi ships in the southern part of the Red Sea as well as critical energy terminals on that body of water and Saudi refineries. Iranian proxies have also struck the vital East-West pipeline that carries oil to the Red Sea to bypass the Strait of Hormuz, where Iran vastly curtailed shipping after the launch of Operation Epic Fury. The East-West pipeline reportedly reopened after being shut down following a long-range drone attack.

The stark reality facing Macron is that if Saudi oil infrastructure and transport nodes near the Red Sea are destroyed or the pipeline that feeds it is shut down for months the last major oil lifeline from the region — and especially to Europe — will be closed off, sparking a deeper energy crisis.

Iran has already severely curtailed the flow of oil through the Strait of Hormuz since the U.S. and Israel attacked it on Feb. 28. The movement of oil has been further impeded by a U.S. blockade on Iranian ports. However, transits have been increasing as of late, thanks in large measure to U.S. military escorts that U.S. Central Command claims have allowed more than a billion barrels of crude to pass through the Strait of Hormuz. Still, the traffic is far below what it was before the war broke out.

Having both the Strait of Hormuz largely closed and energy exports out of the Red Sea shut down simultaneously is a nightmare scenario. By Thursday evening Eastern time, the per-barrel price of Brent crude oil shot up to nearly $107, according to OilPrice.com. It had fallen below $100 per barrel just two days earlier.

Given all this, the French president sought to offer reassurance about oil supplies, according to France 24.

“He said he had carried out ‘intense diplomatic activity,’ meeting in recent weeks with the leaders of Saudi Arabia, Iraq and Nigeria, all hydrocarbon suppliers, to ensure France keeps receiving the same volumes,” the publication noted.

“We have replenished gas stocks and also oil stocks” for the months ahead, the French president also said.

Macron’s decision follows one by the U.K.’s  Royal Air Force (RAF) on Tuesday to deploy one of its Voyager aerial refueling jets to help Saudi Arabia defend against Houthi attacks. As with the French move, it is a response to concerns about the flow of oil.

“Escalating tensions in the Gulf could have negative consequences here in the UK—such as rising prices, disruptions to energy supplies, and increased costs for British businesses,” the U.K. Defense Ministry (MoD) explained in announcing the deployment. “The Houthis pose a threat to stability in the Middle East; therefore, it is in the UK’s national interest—economically and in terms of security—that they do not succeed in their aims.”

“We unequivocally condemn Houthi attacks on Saudi Arabia, and our position is clear: both Saudi Arabia and the Yemeni government have the right to self-defense,” the ministry added. 

The jet will operate from a U.K. air base in Cyprus and will begin air-to-air refueling operations in the coming days, the BBC reported.

The French and British deployments contrast decisions by the U.S. and other nations not to get involved with the Saudi-Houthi fight.

Last week, Trump turned down a direct plea from Saudi Crown Prince Mohammed bin Salman, the Kingdom’s de facto leader, to attack the Houthis. Meanwhile, Pakistan and Turkey, which signed the Mecca Joint Defense Agreement with Saudi Arabia, have yet to provide any direct military aid. The pact holds that an attack on one is considered an attack on all; however, it doesn’t stipulate exactly what actions should be taken.

The security situation in Yemen has drastically deteriorated since the launch of Epic Fury after the Houthis joined the U.S.-Iran conflict on the side of their major supporter.

The Houthis have been directly attacking Saudi Arabia over claims that the kingdom has imposed a blockade on them. Beyond that, the mostly dormant civil war between the Houthis and internationally recognized Yemeni government forces, backed by Saudi Arabia, reignited in the wake of operation Epic Fury. The Houthis have made large territorial gains in the renewed conflict, including capturing the port city of Mokha and two key islands in the Red Sea. This has strengthened the Houthi hold on the BAM. You can read more about that in our story here.

3. The Houthis have reportedly attempted to seize ROYG-controlled islands in the Red Sea from which Houthi fighters could launch attacks on international shipping. Houthi forces reportedly landed on the Hanish Islands in the southern Red Sea on the morning of September 10 after… pic.twitter.com/tiFPgNDOHZ

— Institute for the Study of War (@TheStudyofWar) September 11, 2026

The civil war in Yemen erupted in 2014 and expanded a year later when a Saudi-led coalition joined forces with the government ousted by the Houthis. The fighting between Saudi-led forces and the Houthis largely abated after a tenuous ceasefire took hold in 2022. The Saudis held off on getting involved in the recent Red Sea conflict, which saw the U.S. and coalition warships duking it out with the Houthis and eventually led to a U.S.-led air campaign over Yemen. The United Kingdom was another significant player in that air campaign.

Meanwhile, exacerbating concerns about the flow of oil from the Red Sea, “a senior adviser to Iran’s supreme leader warned Thursday that Iranian forces and their Houthi allies in Yemen could respond to any new U.S. attacks by opening ‘a new front’ in its war with the U.S. by targeting energy supplies in the Red Sea,” CBS News reported.

The statements came after U.S. President Donald Trump on Wednesday once again threatened Iran.

“Will a deal be made with Iran that lets them rebuild and create a far greater country than it ever was before?” Trump asked rhetorically. “Or do I annihilate the Islamic Republic and do it quickly, never giving them a chance to kill and destroy people and countries again?”

Trump added that he believed he would make a peace deal with Iran after the upcoming U.S. midterm elections, which will decide the control of Congress.

As we noted yesterday, with gasoline and diesel price increases damaging the economy, the war and Trump’s handling of it have been unpopular with voters.

The fact that France is sending forces to Saudi Arabia is an ominous development and another indication that the current spate of unrest that began with Epic Fury does not appear to show any signs of ending anytime soon.

Contact the author: howard@twz.com 

Amid the US-Israel war on Iran, the country’s economy has suffered a sharp contraction, with its crucial oil and gas sector taking the biggest hit as the United States tightens its economic and military pressure on Tehran.

Data released by the government-administered Statistical Center of Iran showed gross domestic product (GDP) shrank by 10.1 percent year-on-year between March 21 and June 20, the first quarter of the Persian calendar.

The period covers the opening months of the US-Israel war on Iran, which began on February 28.

The economic downturn has come as Iran struggles to export its oil, one of its most important sources of foreign currency, while also contending with high inflation, a weakening rial, and disruptions to trade and industry.

Here is what you need to know:

What does the economic data say?

The headline GDP number masks an even steeper decline in Iran’s energy industry. Crude oil and natural gas activity contracted by 26.4 percent compared with the same period a year earlier. GDP excluding oil, by comparison, fell by 4.6 percent.

The damage has spread beyond the energy sector. Industry and mining contracted by 14.7 percent, services declined by 4.8 percent, and manufacturing contracted by 2.5 percent. Agriculture was the exception, growing at 2.3 percent.

Those figures come amid an already difficult economic situation in the country. Earlier this month, Iran’s 12-month average inflation reached 69.9 percent, while food, beverage, and tobacco prices rose at nearly twice that rate. Official unemployment climbed to 9.1 percent in the spring.

The rial, meanwhile, fell from about one million to the US dollar a year earlier to more than 2.2 million in early September.

What is the latest with Iran’s oil exports?

Iran’s ability to sell crude has been dramatically curtailed by the US naval blockade, imposed for most of the war.

Iranian crude and condensate loadings collapsed from about two million barrels per day in March to roughly 740,000bpd in July and just 220,000-255,000bpd in August, according to estimates from Kpler and Vortexa.

TankerTrackers.com told the Reuters news agency that 29 tankers, carrying 36.11 million barrels of crude, were trapped in the Strait of Hormuz. Meanwhile, Vortexa estimated total Iranian crude afloat had fallen from 135 million barrels at the end of July to 107 million barrels by late August.

Is Trump winning the economic war on Iran?

By several economic measures, Washington’s pressure campaign is inflicting damage on Iran’s economy.

On September 6, total trade had fallen by 25 to 35 percent, President Masoud Pezeshkian said, with imports hit harder than exports. The US blockade of the Strait of Hormuz has made it hard for ships carrying imports to reach Iranian ports.

Tehran has also explicitly linked the end of the war to economic relief. Iran’s security chief Mohsen Rezaei told Al Jazeera on Saturday that its conditions include “the release of our frozen funds and an end to the naval blockade”.

In addition to the naval blockade, US Treasury Secretary Scott Bessent last month announced an economic pressure campaign against Iran, pledging to target its financial interests across the world. He said the US would target all of Iran’s sources of revenue, including oil, to prevent other countries and companies from doing business with Tehran.

The US-Israeli attacks and Iran’s retaliations have disrupted Tehran’s trade with one of its main economic partners, the United Arab Emirates.

The UAE last month announced an indefinite trade embargo on Iran after accusing its forces of carrying out several ballistic missile attacks, which Tehran denied, calling it a “false flag operation” by Israel and the US.

Chris Beauchamp, market analyst at IG Group, said, “Most wars are contests of stamina more than anything else.”

“The 10 percent drop in Iranian GDP is a sign that the US is succeeding in putting pressure on its foe. But the question rests, as it has done since March, on whether Iran can weather the fall in economic activity better than the US can stand the surge in energy costs,” he told Al Jazeera.

“For a regime prepared to do anything to stay in power, this news will make little difference, so long as the security forces remain loyal,” he added.

What is the latest with diplomatic efforts to end the war?

While Iran has taken a defiant stance against US economic and military pressure, it has indicated repeatedly that it remains open to diplomatic means to end the nearly seven-month-old war.

On Saturday, Rezaei told Al Jazeera that Iran conveyed a formal set of conditions to Washington through Qatari mediators for ending the war.

Iranian state media outlet IRNA reported on Monday that Pakistani Interior Minister Mohsin Naqvi was set to visit Tehran, without specifying the agenda or other details.

Mediators Qatar and Pakistan have been working to re-establish negotiations between the two sides since their memorandum of understanding (MoU) expired last month.

Meanwhile, Iranian Foreign Minister Abbas Araghchi will stop briefly in Qatar before going to New York for the UN General Assembly, IRNA reported.

Iran has repeatedly said it remains ready for any new strikes by Washington.

Rezaei said on Saturday Tehran did not rule out a new US strike against Iran, calling the possibility “very much on the cards” based on his country’s military assessments.

Mark Pfeifle, a Republican strategist and former White House and national security official, said Iran and the US are still willing to strike a deal.

“Sometimes in diplomacy it’s what’s taken off the table,” he told Al Jazeera.

Pfeifle said when Rezaei reiterated his demands for talks with the US, he spoke of “ending the blockade, releasing the frozen funds [and] stopping the attacks”.

“But he left off reparations and reconstruction money, which tells me that there’s a concrete sign that amongst all the rhetoric, which is still very strident, that the pressure campaign that the US is putting on Iran is having some effect,” he said.

“And it tells me that both sides are still looking for room to negotiate in the coming weeks.”

Published on
18/09/2026 – 7:54 GMT+2

Japan’s benchmark Nikkei 225 gained 1.9% to 65,332.57 after the Bank of Japan raised the benchmark interest rate to 1.25% from 1.0%, a 31-year high.

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The move had been widely priced in, coming after the Federal Reserve also raised its key rate this week. Pressures have been coming from the US for Japan to raise rates because of concerns about the weakening yen.

The nations intervened together recently to prop up the yen. But the efforts haven’t had a big impact.

In currency trading, the US dollar rose to 157.11 Japanese yen from 155.95 yen. The euro cost $1.1487, up from $1.1480.

South Korea’s Kospi jumped 2.3% to 6,866.83. Australia’s S&P/ASX 200 was little changed, slipping less than 0.1% to 8,731.50. Hong Kong’s Hang Seng edged up nearly 0.7% to 24,769.80, while the Shanghai Composite added 1.0% to 3,916.08.

Falling oil prices and easing pressure from the bond market helped Wall Street reverse many of its losses from the prior day.

The S&P 500 jumped 1.1% for just its second rise in the last nine days. The Dow Jones Industrial Average added 316 points, or 0.6%, and the Nasdaq composite climbed 1.7%.

Wall Street stocks got a boost after the price of a barrel ofBrent crude oil slid from the nearly $110 it reached earlier in the week on worries that the war with Iran will keep oil bottled up in the Middle East instead of going to customers worldwide.

In Asian trading, Brent, the international standard, lost 0.94% to $103.83 a barrel. Benchmark US crude slid 0.83% to $101.06 a barrel.

Brent is still more expensive than the $72 per barrel that it cost earlier this summer, but the recent drop helped pull yields lower in the bond market and removed some pressure on stocks. The yield on the 10-year Treasury fell to 4.93% from 5.01% late Wednesday.

The Federal Reserve on Wednesday raised the short-term interest rate that it controls, the federal funds rate, by a quarter of a percentage point for its first hike in more than three years. Officials also hinted that they may raise the federal funds rate one more time this year as they try to get high inflation in the US under control.

The signals sent Wall Street on a roller coaster. Stocks initially remained higher for the day after the Fed made its announcement Wednesday. They then slid sharply before recovering a chunk of the losses before trading ended.

On the upside for markets, the shift to higher interest rates built confidence that the Fed is committed to getting inflation back to its target of 2%. On the downside for markets, higher rates undercut prices for stocks and other investments.

All told, the S&P 500 rose 85.95 points to 7,637.76. The Dow Jones Industrial Average gained 316.14 to 51,778.04, and the Nasdaq composite rallied 439.87 to 26,418.30.

Additional sources • AP

New Delhi says it has ‘made clear’ its determination to ‘protect its trade and economic interests’.

India has warned the United States that new measures to levy tariffs over the purchase of Russian oil could impact ⁠bilateral ties, hours after the US Congress approved a bill that would give President Donald Trump new abilities to punish buyers of Russian oil.

The US House of Representatives on Wednesday passed a sweeping sanctions and tariff bill intended to increase economic pressure on Russia over its invasion of ⁠Ukraine.

The bill targets Russia’s energy and defence sectors, President Vladimir Putin and other senior officials, as well as Moscow’s so-called shadow fleet of tankers used to circumvent Western sanctions.

It also authorises President Donald Trump to impose stiff tariffs of up to 100 percent on countries, including India, to reduce their dependence on Russian oil and gas, and⁠ extend sanctions on Iran.

The bill has been sent to Trump to sign into law.

India’s foreign ministry said on Thursday that it “remains firmly committed to ensuring energy security for its 1.4 billion people”.

The Indian foreign ministry said that it had noted the bill’s passage, adding that New Delhi had raised the issue with various US interlocutors in recent months, and had “very clearly articulated” the potential implications for the bilateral relationship and the international energy market.

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” it said in a statement.

The government would work closely with trade and industry bodies to deal with the legislation’s implications, it added.

India, the world’s third-biggest oil importer, is among the biggest buyers of Russian oil, which is seen as helping Moscow replenish its budget since it launched its full-scale invasion of Ukraine in February 2022 and was hit with ⁠sweeping Western sanctions.

New Delhi has repeatedly sought to resist pressure to reduce its oil trade with Russia, saying its large population and economy need secure, affordable and reliable energy supplies.

The symbolic move comes as Argentina escalates its claim over the British-administered territory.

An Argentinian judge has ordered the suspension of a British-Israeli oil project near the Falkland Islands in a purely symbolic move as Argentina escalates its claim over the British-administered territory.

Wednesday’s interim ruling issued by a court in Argentina’s southernmost province, Tierra del Fuego, follows a lawsuit filed by 1982 war veterans and environmental lawyers earlier this month.

The plaintiffs sought to block Britain’s Rockhopper Exploration and Israel’s Navitas Petroleum from the Sea Lion oilfield, located about 220km (137 miles) from the islands.

The judge ordered the companies to “refrain from initiating, pursuing, carrying out or having carried out any material actions” that would involve drilling, installing infrastructure or extracting hydrocarbons, according to a ruling seen by the AFP news agency.

Additionally, the suspension applies “until such time as the environmental impact assessment procedure has been conducted before the national authority competent in environmental matters”.

The judge gave the parties 10 days to provide information, including details about the status of the project, its contractors and its financiers.

President Javier Milei’s administration has also taken legal action against the project, arguing it violates a United Nations resolution calling for both sides to desist from unilateral actions in the islands until their dispute is resolved.

The court order comes just a day after Argentina announced it would file further legal complaints against companies exploring for oil near the islands, intensifying its campaign against businesses operating in the British overseas territory.

Britain and Argentina fought a brief but bitter 10-week war in 1982 over the South Atlantic islands, known to Argentines as the Malvinas.

The 1982 war ended with an Argentinian surrender after 74 days of conflict that killed 649 Argentines and 255 British troops, as well as three Falkland Islanders.

Buenos Aires has doubled down on its claim over the Falkland Islands after US President Donald Trump said Washington was open to reviewing its historically neutral stance on the territory.

London maintains the islands are British and rejects the jurisdiction of Argentinian courts in the Falklands.

The islanders themselves voted overwhelmingly in 2013 to remain British.

But Argentina rejects that outcome, arguing that the principle of self-determination does not apply to a population it considers implanted by Britain after 1833.

Saudi Arabia has intensified air strikes against Houthi positions in Yemen as the Iran backed group expands its territorial gains along the Red Sea coast, opening a new front in the wider Middle East war and adding pressure to already disrupted global energy supplies.

The Houthis have swept through several Yemeni towns and seized islands near the Bab el Mandeb Strait, a strategically important maritime route connecting the Red Sea with the Gulf of Aden. The group has also released footage showing its fighters capturing armoured vehicles from Saudi backed forces.

Houthi military spokesman Yahya Saree claimed that the group had shot down a Saudi F 15 fighter jet and said Saudi Arabia had conducted as many as 450 air strikes in Yemen during the week. Saudi authorities have not confirmed the aircraft claim, while officials supporting the internationally recognised Yemeni government have acknowledged that Saudi and allied forces are carrying out strikes against Houthi positions.

Saudi Arabia faces growing security pressure

The escalation has brought the conflict closer to Saudi territory. The Houthis have repeatedly launched attacks toward Saudi Arabia over the past week, prompting alarms in cities across the kingdom’s south and west.

Saudi Arabia said its air defenses intercepted a Houthi drone south of Mecca before it entered restricted airspace over the holy city. Riyadh described the incident as a serious escalation because of the threat to religious sites. The Houthis denied targeting Mecca and accused Saudi Arabia of using the incident for propaganda.

The United States has also tightened its travel warning for Saudi Arabia, barring government employees from travelling within 20 miles of the Yemen border.

The latest escalation marks a sharp deterioration after several years in which the Saudi led conflict in Yemen had largely quietened under a ceasefire. The Houthis declared a naval blockade against Saudi Arabia in July and resumed attacks on areas in the kingdom before making rapid gains against forces aligned with the Saudi backed Yemeni government.

Energy markets face another shock

The renewed fighting is particularly significant because global energy markets are already under pressure from disruptions caused by the wider war involving Iran.

An attack blamed on Iran aligned fighters in Iraq last week knocked out Saudi Arabia’s East West Pipeline, an important route that allows the kingdom to move oil without relying entirely on the Strait of Hormuz.

Traders estimate that a prolonged closure of the pipeline could affect as much as 4% of global oil supply. Saudi Arabia has not given a timetable for restoring operations, although U.S. Energy Secretary Chris Wright said oil should begin flowing through the pipeline within days.

Brent crude was trading around $108 a barrel on Wednesday, close to its highest level since May. The average U.S. retail diesel price also reached a record above $6.30 a gallon.

The simultaneous disruption around the Strait of Hormuz and Saudi Arabia’s alternative export infrastructure increases the vulnerability of global energy markets to further regional escalation.

Washington faces another difficult choice

The developments also create a new challenge for the United States.

Saudi Crown Prince Mohammed bin Salman spoke with President Donald Trump last week seeking additional military support. So far, U.S. assistance has been limited to intelligence support.

The United States previously conducted a two month bombing campaign against the Houthis in 2025 before Trump announced a ceasefire with the group.

Washington now faces competing pressures. Greater support for Saudi Arabia could help contain the Houthi advance and protect regional energy infrastructure, but deeper military involvement could also expand the U.S. role in another theatre of the Middle East war.

What’s next

The immediate concern is whether the Houthi advance can be contained before the fighting causes further disruption to Saudi energy infrastructure and shipping routes.

For Saudi Arabia, the challenge is to push back against the Houthis while preventing the conflict from developing into a broader regional confrontation.

For global markets, the key issue will be whether disruptions to Saudi oil infrastructure remain temporary. Continued attacks on energy facilities or shipping routes could place additional pressure on already strained supplies.

The developments in Yemen therefore carry consequences well beyond the country’s existing conflict. The combination of Houthi territorial gains, pressure on Saudi Arabia and disruption to major energy routes has created another potential source of instability for the global oil market.

With information from Reuters.

WASHINGTON — A bold military push by Iran and its proxies to create a choke hold on global oil supplies has once again caught the Trump administration off guard, threatening a market shock and a steep political backlash in the U.S. midterm elections.

A drone attack on Saudi Arabia’s most crucial pipeline, which siphons crude oil from the Persian Gulf to the Red Sea to bypass the Strait of Hormuz, has led to the line’s closure, potentially taking 4% of the world’s supply off the market.

And a lightning advance by Iran-backed Houthi rebels along Yemen’s Red Sea coast threatens commercial traffic through the Bab el-Mandeb Strait, second only to Hormuz in its importance to regional shipping.

The strikes put the Trump administration in a newly precarious position less than two months until the November midterms. President Trump’s military advisors have warned him that any retaliation could lead to a further depletion of critically low U.S. munition stockpiles, endanger American personnel in the field and risk escalation that could spiral out of Washington’s control.

A semi prepares for departure from a Pilot fuel station Monday in Buda, Texas.

(Brandon Bell / Getty Images)

On Tuesday, the global price of oil topped $107 a barrel — the first time in U.S. campaign history that an incumbent president has faced rising pump prices at this stage of an election.

The Iranian strikes come as Europe and the United States are facing increased energy needs entering the fall and winter months, and as Ukrainian attacks on Russia’s energy infrastructure have surged, pushing diesel prices up to record highs.

Signs are emerging that the latest attacks could trigger an acute market panic, with Brent crude buyers paying a steep premium for early delivery — an indication that the industry fears an impending supply crisis.

“I fear there is a considerable risk of much higher gas and diesel prices in the weeks to come,” said Michael O’Hanlon, director of research of the foreign policy program at the Brookings Institution.

“No one is quite sure how to predict the fuel markets,” he added, “but the military dynamics are seriously worrisome.”

Last week, Trump told reporters that the Iranian government is “desperate to try and affect the election” and could be trying to keep oil prices elevated to hurt Republican prospects.

“Right after the election, oil prices are going to be tumbling downward,” Trump said. “I think it’s going to take a little bit longer than the midterm.”

Traders work on the floor of the New York Stock Exchange on Monday morning.

(Michael M. Santiago / Getty Images)

Polls have found that likely voters are prioritizing the economy far beyond any other policy matter going into the fall election season, with a New York Times poll published Tuesday showing voters trusting Democrats to handle the economy more than Republicans.

“There’s no quick fix,” said Simon Henderson, the director of the Washington Institute’s Gulf and Energy Policy program. “The main question is whether it is a big shock to the oil market or just another more minor shock. The answer depends on whether the damage to the East-West pipeline cable is repaired quickly.”

Region on edge

The latest Iranian campaign threatens Saudi Arabia’s economic core, straining a long-standing alliance built on robust U.S. defense of Riyadh’s vital interests.

The attack on the East-West oil pipeline originated in Iraq, where Iran continues to operate proxy militias, according to government officials in Riyadh and Baghdad. Saudi Arabia agreed not to retaliate militarily against targets on Iraqi soil, temporarily staving off a regional conflagration.

While the Iraqi militia group denied involvement, it also praised the Houthi advance in Yemen and the militants’ “ongoing battlefield victories against Saudi forces.”

Israel has been providing Saudi Arabia with intelligence to help thwart further attacks, using American military intermediaries, according to Israeli media reports.

Active combat in the war between Iran and the United States eased after a ceasefire was brokered in June. While that truce collapsed in July, the two sides have opted for asymmetric tactics over the resumption of direct attacks, with the United States maintaining a full naval blockade of Iranian ports.

The Trump administration has since focused instead on targeting Iran’s economic partners with aggressive secondary sanctions, seeking to further pressure Tehran into a meaningful peace agreement. But negotiations have failed for months to get back off the ground.

When he first launched the war in February, Trump projected the mission would last roughly six weeks. He said the goal of the U.S. operation was to incapacitate Iran’s ballistic missile program, its navy and its nuclear program.

Trump was warned ahead of the war by his joint chiefs of staff that Iran could attempt to close the Strait of Hormuz in response. But he dismissed the threat, anticipating Tehran would quickly back down from a direct confrontation with the United States.

More than six months on, Iran’s ballistic missiles continue to pressure U.S. defense systems across the Middle East. Traffic through the Strait of Hormuz remains disrupted and discussions on Iran’s future nuclear work have broken down. In private, Trump administration officials fear the war could drag through the remainder of the president’s term.

TRIPOLI: Operations were suspended at two oilfields and a pumping station after members of the security force charged with protecting Libya’s oil sector closed a valve on the main Hamada-Zawiya crude-loading pipeline, the National Oil Corporation said on Tuesday.

The NOC said it may declare force majeure if the valve remains closed or if other fields ‌are subjected ‌to similar forced shutdowns.

The company said ‌production had completely halted at the Hamada and Tahara fields and at a pumping station. Libyan oil output has been subject to repeated closures for political and technical reasons since the 2011 uprising against Muammar Qaddafi.

In a statement obtained by Reuters, the Petroleum Facilities Guard, which provides security for Libya’s oil fields, pipelines and terminals, demanded that ‌their agency be transferred “financially ‌and administratively under the National Oil Corporation”.

They called on the ‌prime ministry and the NOC to take urgent measures ‌to complete the administrative and financial arrangements for this, and set a clear implementation timeline.

The agency currently operates under the defense ministry. The Guard said it would implement a ‌partial production cut for one week as of Tuesday at several fields including Wafa, Al-Khamsa and El Feel, adding that a complete shutdown would follow if their demands were not met.

Oil production is Libya’s main economic source, representing approximately 90 percent of the economy of the entire country. “Shutting down oil fields and halting production operations at this critical juncture — as the world witnesses a rise in crude oil prices — constitutes a devastating blow to the national economy,” the NOC said in a statement.

BERLIN: Iraqi Prime Minister Ali al-Zaidi said on Tuesday that he discussed selling oil to Europe during visits to France and Germany, as Baghdad seeks to diversify its export routes and reduce its reliance on the Strait of Hormuz.

During a press conference with German Chancellor Friedrich Merz in Berlin, Zaidi said “we want to expand and diversify our export routes”.

He added that “Iraq cannot remain hostage to a single corridor” as recent events have demonstrated, referring to the Strait of Hormuz, which has been blockaded by Iran during the Middle East war.

Zaidi said that he had discussed oil exports to Europe with Merz and French President Emmanuel Macron, whom he met in Paris on Monday.

Crude oil sales account for nearly 90 percent of Iraq’s revenue but its exports have been hurt by the outbreak of the Middle East war between Iran and the United States.

Before the war began in February, Iraq produced around four million barrels per day, and exported an average of 3.4 million bpd, mostly via Hormuz.

Most of its oil exports go to East Asia, with China and India its largest buyers.

Due to the disruption, Iraq began exporting crude using tanker trucks through Syria, as well as through a pipeline to the Turkish port of Ceyhan, although these routes can handle only a fraction of its usual sea-bound trade.

Zaidi said that Baghdad could “double its oil exports through the Mediterranean” to supply markets in Europe and the United States.

Zaidi, who hopes to increase Iraq’s oil production to 10 million barrels per day, said that “a large share, or nearly half, can go to European countries and the West”.

He said that Iraq and Germany were expected to reach “an understanding on the export of crude oil” while Baghdad would purchase German technology and equipment.

Merz said that the main focus for Iraqi-German cooperation is the economy.

“Many German companies are now active in Iraq. They are developing new solutions, for example for energy supply,” he said, adding that “the best example is an agreement on Iraq’s electricity supply, which we will sign today”.

Merz also expressed his concerns after Yemen’s Houthis cemented their control over the Bab al-Mandab waterway at the entrance to the Red Sea, a vital route for Saudi oil exports.

“This further exacerbates the situation on the energy markets, and also affects Germany,” he said.

Published on 14/09/2026 – 9:40 GMT+2•Updated
9:46

The oil market spent Monday morning pricing in a weekend of bad news from the Gulf.

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Brent for October and November deliveries gained over 3% and crossed $108 a barrel, while the US benchmark WTI for October rose 2.3% to around $102, both extending last week’s advance after each reclaimed the $100 threshold.

Prices moved following Saudi Arabia’s announcement that its East-West pipeline is temporarily closed after drone attacks.

The line carries crude across the kingdom to Red Sea ports, allowing oil to reach export terminals without passing through the Strait of Hormuz, so its loss removes the main alternative at the moment the strait itself is most dangerous.

That danger was also demonstrated on Sunday, when a merchant vessel was hit in the strait, killing one person and injuring three others, according to Iranian authorities.

Passage through the waterway now works very differently from before the war.

Vessels must obtain Iranian permission to transit, and Tehran is weighing a mechanism to charge service fees. Ships that fail to comply are routinely targeted, while US forces periodically bomb the Iranian coastline to contest Tehran’s claim to control the strait.

Diplomatic efforts have stalled too.

Oman has postponed planned talks between Iran and Gulf states on the future of the waterway, which carries a large share of the world’s seaborne oil trade.

Record fuel prices and finger-pointing

The consequences are extremely visible at American pumps.

The US national average price of diesel crossed $6 a gallon on Friday for the first time in history, up from around $5.85 a week earlier and roughly 60% above the $3.71 drivers paid a year ago.

Petrol is also averaging $4.22 after setting records over the Labor Day weekend.

US President Donald Trump has pointed the finger elsewhere.

Speaking to reporters in Ireland on Sunday, where he was attending the Irish Open at his Doonbeg golf resort, Trump stated Ukrainian President Volodymyr Zelenskyy “has to stop knocking out diesel fuel in Russia.”

“Let him go after targets, but not diesel fuel, because he’s causing a shortage of diesel fuel,” Trump added.

Ukraine has struck more than 20 Russian refinery targets this summer, prompting Moscow to ban diesel exports.

On the flight back from his state visit to Ireland this weekend, Trump reiterated the claim.

However, the supply arithmetic suggests otherwise.

Analysts attribute roughly 800,000 barrels a day of lost diesel supply to Russia’s export ban, against about 1.2 million from disruption around the Strait of Hormuz, according to Lipow Oil Associates.

The wider picture is more lopsided still as crude flows through the strait have fallen from around 20 million barrels a day before the war to about 7 million.

Between them, the two wars have also shut refineries representing around 5 million barrels a day of capacity.

Additional sources • AFP

BEIJING: Oil prices jumped more than two percent on Monday, after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.

Brent crude futures rose $2.90, or 2.77 percent, to $107.51 per barrel as of 2313 GMT. WTI futures rose $2.27, or 2.27 percent, to $102.32 per barrel. Prices had initially risen more than ‌3 percent at market ‌open.

Saudi Arabian state media on Sunday released ​video ‌footage of ⁠damage to ​homes ⁠and a mosque from what it said was a Houthi attack on the country’s southern Jazan province. The Houthis said they had also struck a Saudi military base in a neighboring province.

A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to be evacuated, the British maritime security agency UKMTO said on Sunday.

Iran said one person was killed ⁠and four crew wounded aboard an Iranian commercial vessel struck ‌off its coast.

Oil prices had been ‌expected to rise on Monday amid growing concerns about ​risks to supply from Saudi Arabia, ‌the world’s largest oil exporter, whose East-West oil pipeline was shut on Friday ‌by a drone strike that originated in Iraq.

The loss of the pipeline, which helped Saudi Arabia re-route its exports avoiding the Strait of Hormuz, threatens up to 4 percent of global oil supply.

Meanwhile, Yemen’s Iran-aligned Houthis had reached the strategic island of Perim on ‌Friday, moving to tighten their control over the Bab Al-Mandab Strait, another key oil transit lane that has been shipping ⁠4-5 percent of ⁠global supply in recent months.

Oil surged 8 percent higher on the week due to the disruptions, rising above $100 for the first time since July.

“Looking ahead, unless this week’s talks in Oman produce something operational — or the East-West pipeline is brought back online quickly — the risk is that crude oil continues to extend its gains toward the $119.48 high of early March,” IG market analyst Tony Sycamore said in a note on Sunday.

Omani Foreign Minister Badr Albusaidi said on X later on Sunday, however, that a scheduled Monday meeting in Oman between Gulf countries and Iran to discuss the Strait of Hormuz had been postponed.

No peace talks ​have been held in the ​war, launched six months ago by the United States and Israel, since an interim agreement in June collapsed after a few weeks.

Saudi Arabia has closed its East-West oil pipeline due to a drone attack linked to Iranian-backed militias in Iraq. This pipeline is crucial for Saudi Arabia, as it allows the country to bypass the congested Strait of Hormuz, which has faced reduced tanker traffic due to an ongoing conflict between the U.S. and Iran. The Saudi Energy Ministry stated that the closure is a precautionary measure; the pipeline typically carries about 4 to 5 million barrels of oil per day, contributing 4% to 5% of global oil supply. The attack caused injuries and damage, but the exact impact on oil exports is still being evaluated.

President Trump, while attending a golf event in Ireland, suggested that Iran was likely responsible for the attack and predicted that oil prices would drop after the upcoming U.S. midterm elections. Recently, oil prices have surged, with diesel prices in the U.S. topping $6 a gallon due to tensions in the region. Reports surfaced that the Houthis, aligned with Iran, seized the strategic Perim Island in the Red Sea.

Crown Prince Mohammed bin Salman of Saudi Arabia reached out to Trump for military assistance against the Houthis, but Washington decided not to intervene directly at that moment, offering intelligence support instead. There were concerns that the attacks on the pipeline and Perim Island could escalate tensions further, especially since diplomatic efforts to resolve the war have stalled.

Iran’s parliamentary committee has stated that negotiations are futile unless the U.S. meets Iran’s demands, particularly concerning recognition of its control over the Strait of Hormuz. The Iranian foreign ministry announced plans for discussions with Gulf states in Oman regarding the strait. Meanwhile, Iraq’s government dismissed a military commander connected to the attack and has closed the Shalamcheh border crossing with Iran as a precaution to prevent further incidents.

The Saudis have not retaliated yet, following a request from Iraq’s prime minister, but they maintain the right to take necessary actions to protect their interests. Saudi Arabia’s oil production has plummeted to its lowest level in over 30 years, partly due to attacks on maritime vessels by Houthi factions. These forces, supported by Iranian guidance, are reportedly planning counterattacks to reclaim territories lost to the Houthis, who have advanced significantly along Yemen’s coast under Iranian direction. The Houthis have claimed that maritime navigation remains safe, except for Saudi vessels, which are subject to a ban.

With information from Reuters