Trump hopes Iran war nearing end as Houthi-Saudi fighting escalates

U.S. President Donald Trump expressed hope that the ongoing war against Iran was nearing an end, as tensions escalated with Saudi Arabia and the Houthi fighters in Yemen. The conflict, now in its seventh month, has seen the Iran-backed Houthis advance in Yemen and attack Saudi cities, while also disrupting Saudi Arabia's East-West oil pipeline.

The Houthi fighters have intensified their attacks with drones and missiles on Saudi targets, including the oil port of Yanbu and an airbase at Khamis Mushait. As the war expands, the United States has tightened its travel warning for Saudi Arabia, restricting government employees from traveling within 20 miles of the Yemen border.

Despite reports of the Houthis and Saudi Arabia fighting, Trump stated earlier that "well, hopefully we are towards the end of the war." He also mentioned hearing from Iran "directly," without providing further details. The extension of the conflict into Yemen poses a significant threat to global oil supplies, with the East-West pipeline potentially cutting off up to 4% of the world's oil production if it were to be damaged.

Brent crude futures dropped in early Thursday trading as reports of Saudi Arabia offering additional crude through Oman alleviated concerns about supply disruptions in the Middle East. Oil prices have reached record highs, with the price of Brent crude hovering around $108 a barrel and U.S. diesel fuel prices nearing an all-time high of $6.30 per gallon.

The rise in oil and gas prices due to the U.S.-Israeli war on Iran has become a contentious issue for Trump's Republican Party ahead of the November midterm elections. Trump is expected to meet with Gulf leaders on the sidelines of the U.N. General Assembly to discuss the next steps in the conflict.