Trump Hopes Iran War Nears End as Saudi-Houthi Fight Escalates
US President Donald Trump expressed hope that the seven-month conflict against Iran is nearing its end. However, the ongoing war has taken a new turn as fighting between Saudi Arabia and Iran-backed Houthi forces escalates in Yemen.
The conflict began on February 28 when the US and Israel attacked Iran, prompting Tehran to strike Israeli and US bases in Gulf states. The expansion of hostilities into Yemen has added pressure to global energy markets already disrupted by restrictions on shipping through the Strait of Hormuz.
The Strait of Hormuz handles around 20% of global oil and liquefied natural gas supplies. Saudi Arabia's East-West oil pipeline, damaged in a recent Houthi attack, could remove as much as 4% of global oil supply if it remains shut down for an extended period.
Oil prices rose to near their highest levels since May before retreating after reports that Saudi Arabia was offering additional crude cargoes through Oman. Brent crude futures fell $1.24, or 1.2%, to $104.59 a barrel, while US West Texas Intermediate futures declined $1.14, or 1.1%, to $101.29.