Saudi Conflict Draws Foreign Militaries as Pipeline Resumes Operations

The Saudi-Yemen conflict has drawn in foreign militaries as France and the UK offer limited defensive support to the Kingdom. French President Emmanuel Macron announced that his country will send troops, radar systems, and defense equipment to protect Yanbu, a key oil port. The UK's contribution is more limited, with a single Royal Air Force Voyager providing 'defensive air-to-air refuelling' for several weeks. This move comes as the East-West pipeline has resumed operations after being shut down due to a drone strike.

The pipeline, which carries oil from Saudi Arabia to the Red Sea port of Yanbu, is currently running at a reduced rate following damage to three of its 11 pumping stations. Aramco aims to reach nearly 4 million barrels per day and 40% capacity within days, but a full restart will take six to eight weeks.

In other news, the Public Investment Fund (PIF) is considering investing in Gulf bonds through Pacific Investment Management Co. (Pimco). This move would be PIF's first time working with Pimco and comes as the sovereign wealth fund looks to balance its portfolio, which currently leans heavily on equities and private investments.

The Abu Dhabi Investment Authority (Adia) has also made a major transaction, buying into Kaust's USD 1 billion secondaries sale. This deal marks one of the first direct capital links between a Saudi institutional balance sheet and an Emirati sovereign fund.