Iran-backed Houthis tighten grip on key oil shipping lane
The moves by the Houthis make it easier for the Iran-backed rebels to target ships transiting the crucial Bab el-Mandeb Strait for Saudi Arabian oil exports.
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The moves by the Houthis make it easier for the Iran-backed rebels to target ships transiting the crucial Bab el-Mandeb Strait for Saudi Arabian oil exports.
DUBLIN, Sept 12 (Reuters) - U.S. President Donald Trump said on Saturday that Iran was probably responsible for an aerial attack on Saudi Arabia that shut down its East-West pipeline, one of the kingdom's main routes for exporting crude while bypassing the Strait of Hormuz."I think they are, probably they are," Trump told reporters in Dublin when asked if Iran was responsible for the attack on the vital oil conduit.The U.S. president also said that he had spoken with Saudi Crown Prince Mohammed bin Salman, whom he described as a "good friend."
As tensions escalate in the Middle East with no diplomatic resolution in sight, growing disruptions to key oil-shipping waterways are raising fears of a global energy crisis.
QatarEnergy is negotiating with several producers to secure multi-year US LNG contracts through 2031, a report claimed on Saturday.
Yemen's Iran-aligned Houthi rebels captured the strategic Perim Island in the Bab el-Mandeb Strait, located at the southern entrance to the Red Sea, officials said on Friday. The lightning move opens a new front in the Iran war and threatens energy supplies, especially Saudi oil exports, from passing through one of the world's key shipping lanes.
The record price of diesel threatens to stoke inflation at a time when consumers are already price-sensitive and businesses are reeling from higher costs due to trade tensions. Why it matters: Diesel is a key cost throughout the supply chain, meaning soaring prices could eventually show up in what consumers pay for everything from groceries to household goods.Driving the news: The national average price of a gallon of diesel topped $6 for the first time ever, AAA said Friday, Axios' Ben Berkowitz reports.That's up 60% from a year earlier.Between the lines: Food prices could be among the first places consumers feel the ripple effects, executives said this week.At grocery chain Kroger, which has been trying to keep a lid on prices: "I would expect that the pressure is actually going to mount," CEO Greg Foran said Friday on an earnings call.At pork producer Smithfield Foods: "That impact is beginning to flow through in the second half of the year," CFO Mark Hall said Thursday.At Hormel Foods: "With the Iran war and the spike in diesel costs, that's been something we've had to confront," interim CEO Jeffrey Ettinger said Wednesday.But the effects extend well beyond food.For example, at Newell Brands — whose portfolio includes Rubbermaid, Sharpie and Coleman — the inflationary impacts of energy costs have far exceeded the company's initial estimates."It's either resin, which is obviously dependent on the price of oil, or it is direct transportation costs, i.e., diesel," CFO Mark Erceg said Tuesday.The big picture: Energy prices have spiked since President Trump launched the war with Iran, which prompted the closure of the Strait of Hormuz, a key shipping lane.The latest Energy Information Administration outlook expects retail diesel to average $4.40 a gallon in 2027, up 33 cents, or 8.2%, from its previous forecast of $4.07, Axios' Rebecca Falconer and Ben Geman reported.The average price of unleaded gasoline has also spiked, rising by $1.11 over the last year to $4.30 per gallon as of Friday, according to AAA.By the numbers: 47 of the 50 states have experienced an increase in average diesel prices of more than $2 per gallon over the last year, according to GasBuddy analyst Patrick De Haan.The economy is facing an extra $300 million in diesel costs every 24 hours.California is poised to become the first state with average diesel prices above $8 — with many stations already above $9, according to GasBuddy.The bottom line: Record diesel prices are turning the energy shock into a broader cost shock for businesses and consumers.
NEW YORK — U.S. stocks are rebounding Friday and clawing back much of their losses for the week after oil prices eased off their recent spurt. An update on inflation across the United States that came in close to economists’ expectations, even if prices are still rising too quickly for everyone's liking, also helped calm the market. The S&P 500 climbed 1 percent and was on track to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average was up 479 points, or 0.9 percent, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 1.2 percent higher. They got help from a pullback in oil prices, which had jumped to their highest levels since May because of the ongoing war with Iran. The price for a barrel of Brent crude, the international standard, fell 2.5 percent to $104.93 after getting near $110 overnight. That took a bit of pressure off inflation, which remains stubbornly high. A report on Friday showed that U.S. consumers had to pay prices for gasoline, food and other costs of living that were 3.4 percent higher last month than a year earlier. Whi
CAIRO — Yemen’s Iranian-backed Houthi rebels captured a strategic island at the southern entrance to the Red Sea, two officials said Friday, opening a new front in the Iran war and further threatening Saudi oil exports through one of the world’s key shipping lanes. The Houthis’ biggest territorial gains in years, along the Bab el-Mandeb Strait , could boost Iran’s strategy of driving up world oil and gas prices to pressure the United States. Saudi Arabia struck the airport in the nearby port city of Mokha that the Houthis seized Thursday, a Houthi broadcaster said. There were no reports of damage or deaths. The capture of Mayun , a tiny, barren volcanic island inside the strait also known as Perim, was confirmed by a senior military official with Yemen’s internationally recognized government and by a Houthi official. Both spoke on condition of anonymity because they were not authorized to talk to journalists. Saudi Arabia, the world's largest oil exporter, has increasingly relied on the Red Sea to get its crude to market as an alternative to the Strait of Hormuz, where Iran h
Iranian President Masoud Pezeshkian and Russian President Vladimir Putin criticized Western sanctions and asked the BRICS bloc to deepen trade ties.
Rampant Yemeni fighters take control of island in narrow point of Bab al-Mandab strait, which Saudi is relying on for oil exportsViolence in Yemen: why it matters and how it is linked to the US-Iran warYemen’s rampant Houthi forces have captured a strategic island in the Bab al-Mandab strait, expanding their control of the narrow waterway, one of the world’s vital shipping routes.The Iran-aligned Houthis took control of the volcanic island after forces allied to the UN-backed, Aden-based government left in the latest of a dramatic series of reverses along Yemen’s west coast in recent days, including the loss of the port city of Mocha on Thursday. Continue reading...
Annualized inflation rate was 3.4%, same as July, and core inflation, which omits energy and food prices, was up to 2.4%US consumer prices remained stubbornly high in August as the end of the ceasefire between the US and Iran pushed energy prices up, according to data from the US Bureau of Labor Statistics released on Friday.The annualized inflation rate was 3.4%, the same as it was in July. The most recent peak was seen in May, when the inflation rate hit a three-year high at 4.2%. Core inflation, which strips out volatile energy and food prices, increased to 2.4% in August. Continue reading...
In recent weeks, the United States has succeeded in loosening Iran's grip over the Strait of Hormuz while virtually shutting down Iran's own oil exports, accelerating its economic free fall. But the war launched by the U.S. and Israel in February — intended to last a few weeks — is still far from over, and the stalemate is costly for both sides. An agreement reached in June quickly crumbled , with no sign of diplomatic progress since then. Low-level fighting persists, and the U.S. does not seem to have an exit strategy. The mounting economic pressure on Iran has yet to stoke an uprising, and if its leaders are backed into a corner, they may opt for military escalation rather than capitulation. Their Houthi allies in Yemen have meanwhile stepped up attacks on Saudi Arabia , helping to push oil prices back up. The price of a barrel of Brent crude, the international benchmark, surged above $100 this week, and diesel — heavily used in transport and farming — hit a record, potentially stoking inflation. U.S. President Donald Trump has acknowledged that gas prices are likely to stay h
The UK economy grew by a much better than expected 0.4% in July - but experts warn a slowdown is looming amid jump in Iran war related costs
DALLAS — Support for President Trump is dropping among millennials and Gen Zers — particularly young men. Vice President Vance is in charge of getting them back in the midterms.Why it matters: The 42-year-old Vance, the first millennial VP, capped off the GOP's two-day convention here with a direct appeal to families with young children that emphasized the "birthright" of U.S. citizens.Vance also sought to cast Democrats as anti-American, anti-family "crazies.""America belongs to those who love it. Not those who hate it," he said.Zoom in: Support for Republicans is slipping across all age brackets, but the disapproval among millennials and young men is an acute concern for Trump's political operation because they were crucial to his 2024 victory.Millennials, born between 1981 and 1996, are the largest generation in America.They're also the cohort with the largest number of school-age kids — and particularly feel the bite of higher food and gas prices, driving forces behind Trump's low poll numbers.In his 41-minute speech, Vance established his millennial bona fides by mentioning that he's now the father of four young children who share in the "birthright ... to inherit the blessings of the greatest country on Earth."Vance's speech fell on the one-year anniversary of the assassination of his friend and ally, MAGA activist Charlie Kirk, who was 31 when he was shot during an appearance at a Utah college."Charlie spoke to young men in particular," Vance said. "He understood that there was no greater calling for a young man ... than falling in love, starting a family and becoming a father."In contrast, Vance pointed to the now-deleted social media posts of a Michigan Democratic congressional candidate, William Lawrence, who once posted "fuck ... the nuclear family." Vance also attacked Democratic Texas Senate candidate James Talarico and suggested he was too obsessed with transgender kids: "I never want to see that guy's web browser history."The vice president also took umbrage with Michigan Democratic Senate candidate Abdul El-Sayed for suggesting that Vance's now-deceased grandfather wouldn't have loved the vice president's wife, Usha, because she is of Indian heritage. In the midst of accusing the left of opposing the "birthright" of American children, Vance was interrupted by a demonstrator waving a Mexican flag in the American Airlines Arena."Well, my friend, if you love Mexico so much, get your ass over there. I'll buy you the plane ticket," Vance said to the loudest cheers of the night for him.Behind the scenes: Earlier in the day, Vance addressed a closed-door room of Republicans and emphasized the need to talk up the administration's record on lowering costs for prescription drugs — and to attack Democrats."We have to remind the American people of all the good things that we're doing. And number two, we have to remind the American people of how effing crazy the Democrats have become over the past couple of years," Vance said.Friction point: Vance obliquely touched on the major source of the administration's unpopularity — Trump's war in Iran and the high prices it's caused — and asked undecided and unsure voters to overlook it."I'm asking you to do what Charlie did: Do not throw the baby out with the bathwater."Meanwhile, oil prices rose this week to more than $100 a barrel, and diesel in some California gas stations is almost $10 a gallon.Mortgage rates are rising and the administration's efforts to stop the jumps have proven feckless so far.And on Thursday, Houthi rebels in Yemen were closing in on a strategic Red Sea port that could threaten more oil tankers and cause oil prices to skyrocket even more.The other side: Democrats and other critics say the administration's policies, from cutting Medicaid to gutting other programs for kids, are anti-family.The big picture: The Dallas convention was all about Trump, not Vance. And it was about the upcoming Nov. 3 elections — not the passing of a torch, which Trump is loath to talk about as he nears his final two years in the White House.Vance officially hasn't decided whether he'll run for president in 2028, but few insiders believe he won't. "The president will hand over the keys to JD on Inauguration Day, but it's not a topic of discussion," one Trump adviser said. "This about winning this November."What's next: Vance and Trump plan to hit the campaign trail to support as many as 35 congressional candidates and a dozen Senate campaigns."I'm going to go to every one of those states for congressmen and for senators," Trump said Wednesday night. "And we're going to have rallies just like this."Between the lines: Vance is younger than any member of Trump's Cabinet, the freshest face in an administration led by the oldest person ever elected to the presidency — Trump, an 80-year-old Baby Boomer."The dynamic you're seeing play out in the administration between the young millennial leader and the boomer is happening in corporate boardrooms across America," an administration political adviser said."JD is uniquely qualified to talk to parents with young families. He's one of them, so this is only the start."
Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout The UK economy grew in July as the rapid expansion of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey.Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June. City economists had forecast zero growth. Continue reading...
U.S. diesel prices hit their highest level ever as fuel supply disruption stemming from the Ukraine and Iran wars lifts transportation costs.
Prices for basic medicines such as paracetamol and insulin have skyrocketed amid major shortages of less common pharmaceuticals. More than 70% of healthcare costs in Iran are paid out of pocket, leaving the most vulnerable patients unable to afford treatment.
The KOSPI edged lower Friday amid rising oil prices as renewed geopolitical tensions in the Middle East fueled concerns over inflation. The benchmark index opened 3.29 percent lower at 6,802.50 and pared some of its losses in afternoon trading before closing at 6,909.91, down 1.76 percent from the previous session. Foreign investors sold a net 2.29 trillion won ($1.70 billion) worth of shares, while institutional investors sold a net 1.22 trillion won. Retail investors were the net buyers, purchasing 1.87 trillion won worth of shares. Market bellwethers also fell. SK hynix fell 2.21 percent to close at 1.812 million won, while Samsung Electronics lost 3.35 percent to finish at 259,500 won. With little prospect of negotiations between Iran and the United States resuming in the near term, international oil prices continued to rise. West Texas Intermediate and Brent crude futures climbed above $100 per barrel, adding to concerns over inflation. Concerns over inflation were also heightened after the U.S. producer price index rose 5.4 percent in August from a year earlier, Thursday (local time
The United States has succeeded in loosening Iran's grip over the Strait of Hormuz while virtually shutting down Iran's own exports
Saudi Crown Prince Mohammed bin Salman (MBS) called President Trump twice Thursday, urging him to launch strikes against the Houthis as the Iran-backed group closed in on a vital Red Sea chokepoint, two U.S. officials told Axios.Trump declined, and U.S. officials stressed the administration has no plans to intervene directly against the Houthis for now.Why it matters: Oil prices surged Thursday as the Houthis seized a strategic coastal city in Yemen, pushing them closer to the Bab al-Mandab Strait — a vital artery for global trade and Saudi oil exports.With Iran already disrupting traffic through the Strait of Hormuz, Houthi control of Bab al-Mandab could give Tehran a powerful new point of leverage over the U.S. and its Gulf allies.Driving the news: The U.S. is concerned about the rapidly escalating fight in Yemen and is stepping up support for Saudi Arabia while trying to avoid direct military involvement.Adm. Brad Cooper, the commander of U.S. Central Command, traveled to Saudi Arabia on Thursday for urgent coordination meetings, two sources with knowledge of the matter said.The Saudi embassy in Washington and the White House declined to comment. Catch up quick: The Saudi-Houthi confrontation reignited in July after Riyadh prevented an Iranian plane carrying senior Houthi officials home from the funeral of former Iranian Supreme Leader Ali Khamenei from landing in Sanaa.MBS asked Trump for political backing to strike the Sanaa airport, but made clear Saudi Arabia did not need U.S. military assistance. Trump gave him his support.The Houthis retaliated by attacking Saudi tankers in the Red Sea, threatening a crucial route for the kingdom's oil exports, and later expanded their attacks to Saudi energy facilities.Saudi Arabia and its Yemeni allies responded with airstrikes and ground offensives against Houthi positions.Behind the scenes: Saudi Arabia's request for direct U.S. military action marks a sharp reversal from July, when Riyadh told Washington it could handle the Houthis on its own.As the fighting intensified, however, the Saudis began seeking increasing levels of U.S. support.U.S. military and civilian officials have told their Saudi counterparts in recent weeks that Trump's directive is to keep American forces focused on Iran and the Strait of Hormuz — and avoid opening another front, sources familiar with the discussions said.On Thursday, as Houthi forces advanced on the coastal city of Mokha and Saudi-backed Yemeni forces retreated, MBS called Trump to brief him on the deteriorating situation, U.S. officials said.Several hours later, MBS called again and urged Trump to order U.S. strikes against the Houthis.Trump declined, but a U.S. official said the administration will provide Saudi Arabia with intelligence on the Houthis and targeting data.Roughly 200 U.S. military personnel are already in Saudi Arabia providing non-kinetic support, the official said.What they're saying: A senior Trump administration official signaled that Washington's priority is keeping the Red Sea open while leaving the broader fight to its regional partners."The United States is focused on protecting our core national security interests — such as ensuring freedom of navigation in the Red Sea — while empowering our regional partners to take the lead in managing and resolving regional security challenges," the official said."We are in continuous dialogue with Saudi Arabia and the Republic of Yemen Government regarding regional stability."
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Iran-aligned Houthis advance along the Yemeni coast as Iranian strikes damage multiple US military aircraft in an escalation on two fronts of the war.
Crude jumps above $107 a barrel amid concerns over Middle East conflict and out-of-control government borrowingNervous investors across big economies have been dumping government bonds, driving up the cost of borrowing, as surging oil prices amplified fears about rising inflation.The cost of a barrel of oil jumped 6% to above $107 on Thursday amid concerns that advances by Houthi rebels along the Red Sea coast in Yemen could choke off Saudi crude exports. Continue reading...
As the U.S. war with Iran drags on, Iranians face increasing layoffs and a rising unemployment rate.
Housing market has been stymied by borrowing costs, as Iran war pushed mortgage rates higherSales of previously occupied US homes declined in August to their slowest annual pace in more than a year as home shoppers grappled with rising mortgage rates and home prices.Existing home sales fell 2% last month from July to a seasonally adjusted annual rate of 3.98m units, the National Association of Realtors said on Thursday. This is the third straight monthly decline. Continue reading...
President Trump said in a new interview with "The Ingraham Angle" on Thursday that he would make the same decisions on the Iran war, despite acknowledging that he sometimes questions himself.Why it matters: The Iran war is weighing on Trump and Republicans as they make their case to voters ahead of the midterms.Trump faces declining approval ratings as Republicans sour on the president, thanks to the war in Iran, high gas prices and inflation.What he's saying: "I don't believe in the word regret," Trump told Fox News' Laura Ingraham when asked about concerns over the war heading into the midterms."You can always question yourself a little bit. And a few people have asked me that. If I had it to do again, I'd do exactly as I did."The big picture: Trump is making the Iran war part of his closing midterm argument rather than trying to move past it.Trump used the first night of the GOP midterm convention in Dallas to defend the Iran war and attack Democrats. He also suggested that the war would end after election day."If we hand America's future to the radical-left Democrats, our nation will spend the next decade just getting back on its feet," Trump said. "Vote Republican and we will leave the world in our dust for generations to come."Go deeper: Trump, alone
NEW YORK — Oil prices jumped more than 6 percent on Thursday, with both major benchmarks trading at over $100 a barrel as the biggest spike in attacks on shipping since the Iran war began fed worries among traders about further disruptions to already tight supplies. Brent crude futures settled up $6.42, or 6.34 percent, at $107.63 a barrel. U.S. oil topped $100 a barrel for the first time since May as West Texas Intermediate crude futures rose $6.43, or 6.69 percent, to $102.48. Both benchmarks hit their highest since May 19 and recorded their steepest increases in nearly two months. Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing a further threat to Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days. Attacks from Yemen on Saudi energy facilities introduce a fresh source of market risk, expanding concerns beyond Iran and the Strait of Hormuz, said Simon-Peter Massabni, head of business development at XS.com. The threat is no longer confined to a single choke
NEW YORK — Oil prices jumped 5 percent on Thursday, with both major benchmarks trading at over $100 a barrel as the biggest spike in attacks on shipping since the Iran war began fed worries about further disruptions to already tight supplies. Brent crude futures were up $5.39, or 5.33 percent, at $106.60 a barrel by 11:49 a.m. ET (1549 GMT). U.S. oil topped $100 a barrel for the first time since May as West Texas Intermediate crude futures rose $5.16, or 5.37 percent, to $101.21. Brent prices have surged by more than 30 percent from lows touched in early August as a permanent agreement between the U.S. and Iran to cease attacks never materialized and fighting resumed. Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing further threat to Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days. Attacks from Yemen on Saudi energy facilities introduce a fresh source of market risk, expanding concerns beyond Iran and the Strait of Hormuz, said Simon-Peter Massabni, head o