Skip to content
Back to Guavy Wire
Commodities

US Deal with Houthi Militia Leaves Saudi Arabia in Quicksand

Instruments
Oil
Share

Saudi Arabia is struggling to combat the resurgent Ansar Allah militia in Yemen, while its principal ally, the US, may have cut a deal with the Iran-backed group.

The Houthis launched a surprise offensive last week that saw them blitz across Yemen's Red Sea coast and take control of several islands along the Bab el-Mandeb strait, one of Riyadh's key oil export routes.

The US and Houthis have reportedly engaged in direct outreach, potentially reshaping the dynamics of the conflict in Yemen. Nabeel Khoury, a former US deputy ambassador to Yemen, told The Guardian that there appears to be a 'kind of tacit understanding' between the Trump administration and the Houthis following a meeting in Oman.

The US had previously launched bombing campaigns against the Houthis, but now seems to have accepted some form of understanding with Ansar Allah. This development could have serious implications for Saudi Arabia, which may increasingly find itself having to confront the Houthis largely on its own.

More on Commodities

Disclaimer: Guavy is a data and market intelligence provider, not an investment adviser. The information, signals, and market analysis provided by the Guavy API and related services are for informational purposes only and are not intended as financial advice, investment recommendations, or an endorsement of any particular trading strategy. Trading in volatile markets, including cryptocurrency, carries significant risk and may not be suitable for all investors. Past performance is not indicative of future results. Users should consult with a qualified financial professional before making any investment decisions. Guavy makes no guarantee of trading profits or financial returns.

Market sentiment intelligence for apps, funds & agents

Location

729 55 Ave SW
Calgary AB T2V 0G4
Canada

© 2026 Guavy Inc