Yemen launches Saudi-backed counterattack against Houthis

Yemen’s Saudi-backed government forces launched a major military campaign Sunday to beat back Iran-aligned Houthi rebels, adding fresh risks to oil markets as Iran reiterated that the Strait of Hormuz remains closed.

Gulf OPEC+ producers continue to pump well below prewar levels, while global inventories have fallen sharply amid export disruptions. OPEC+ agreed Sunday to keep November production targets steady as it seeks to stabilize the market.

Yet even as the flows of crude from the Middle East have increased, oil remains near $100 a barrel.

“A recovery in supply volume does not equal a full normalization of the supply system,” an oil analyst told Bloomberg, as the market continues to price in the reliability of exports.