Key Takeaways
- Yemen's internationally recognized government has officially launched a "comprehensive military operation" to retake the capital, Sanaa, and all Houthi-held territories.
- U.S. Energy Secretary Chris Wright expects global fuel prices to decline by November, citing rising supplies through the Strait of Hormuz and potential European diesel releases.
- China’s halt on diesel and gasoline exports is tightening global markets, while Europe considers releasing 120 million barrels of emergency diesel reserves.
- Russian authorities report that Ukrainian attacks have left over 170,000 subscribers without power in the Donetsk region.
The Yemeni government, led by Presidential Leadership Council Chairman Rashad al-Alimi, announced on Sunday the start of a large-scale military campaign to end the Iranian-backed Houthi coup. The offensive aims to extend state authority over the entire country and recapture the capital, Sanaa, which has been under rebel control since 2014. Military spokespersons confirmed that government forces are steadily advancing toward Houthi strongholds, supported by the Coalition to Support Legitimacy.
In a televised address, the Yemeni Prime Minister emphasized that the government is handling the latest developments with a "high degree of responsibility" to end the suffering of the Yemeni people. The military has called on Houthi fighters to lay down their weapons, framing the battle as a bridge to restoring Yemen to its "Arab fold and strategic depth." This escalation follows a period of intense fighting around the strategic city of Taiz, where Houthis recently cut a vital supply route to the interim capital, Aden.
On the energy front, U.S. Energy Secretary Chris Wright told CBS’s "Face the Nation" that global fuel prices are expected to trend downward despite ongoing geopolitical tensions. Wright noted that supplies through the Strait of Hormuz have continued to rise in recent weeks, reaching approximately 10 million barrels per day. He also highlighted that Europe holds large diesel stockpiles that could be released to stabilize the market, with sources suggesting the U.S. is pushing for a release of 120 million barrels over the next six months.
Market pressures remain high as China continues its decision to halt diesel and gasoline exports, a move Secretary Wright acknowledged is impacting global availability. Simultaneously, the Trump administration is maintaining both diplomatic and military pressure on Iran to curb its regional influence and stabilize energy corridors. Despite these challenges, Wright expressed confidence that U.S. gasoline and diesel prices would decrease by the upcoming midterm elections due to record domestic production and seasonal demand drops.
In Eastern Europe, the conflict between Russia and Ukraine continues to take a heavy toll on energy infrastructure. Russian authorities in the occupied Donetsk region reported that Ukrainian attacks have caused a complete power outage for more than 170,000 subscribers. This follows a massive wave of Russian drone strikes—totaling 135 attack drones—targeting critical infrastructure across Ukraine, leading to emergency power cuts in several Ukrainian communities.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.