Houthis, Saudi-backed forces fight for control of key Yemen highlands

Houthi militants and Saudi-backed forces clashed for strategic positions in Yemen on Monday, a battle that could determine control over areas crucial to shipping chokepoints. The Iran-backed Houthis' advances have left the flow of supplies from Saudi Arabia, a major crude producer, uncertain. The fighting has centered around a mountainous region near Yemen's Red Sea coast, with military gains potentially granting the Houthis more leverage over the Bab el-Mandeb Strait. This strait, linking the Red Sea to the Gulf of Aden, is vital to Saudi Arabia's oil exports.

Saudi Arabia heavily relies on the Bab el-Mandeb routes for oil deliveries, especially since Iran closed the nearby Strait of Hormuz earlier this year. The kingdom's infrastructure has also been targeted, including a key east-west pipeline that traverses the country. On the weekend, the Houthis claimed they launched strikes on Saudi Arabia's capital, Riyadh.

Despite Saudi Arabia's Crown Prince Mohamed bin Salman requesting military support, the United States has not provided aid so far. President Donald Trump reportedly considered ordering airstrikes against the Houthis but canceled the decision at the last minute. Analysts at Vital Knowledge noted that the U.S. military is "already stretched extremely thin" as it attempts to navigate through the Strait of Hormuz and protect existing military installations in the Gulf.

They argue that conditions are dire enough that "it could prompt the major parties into some sort of a settlement deal," with the upcoming United Nations General Assembly in New York providing a possible forum for discussions.

Trump has expressed openness to meeting Iranian President Masoud Pezeshkian during the assembly. However, both Washington and Tehran exchanged fresh threats in recent days, as their month-long war remains stalemate. Trump threatened to wipe out Iran's leadership if Tehran didn't attempt a deal, while Iran's military vowed to retaliate to any renewed attacks.

Despite the risk of supply disruptions in the Middle East, oil prices fell on Monday. This decline was attributed to hopes for diplomatic efforts to resolve the conflict and data from shipping analytics firm Kpler, which showed Saudi oil exports rebounding to nearly 4 million barrels per day in September. The kingdom also aims to restart oil flows through its damaged east-west pipeline, though analysts doubt this goal could be achieved.