Sept 17 - U.S. President Donald Trump said he hoped the war against Iran was nearing its end as the conflict, now in its seventh month, spread into Yemen and intensified attacks on Saudi territory and energy infrastructure.
In recent days Saudi warplanes have bombed Houthi positions in Yemen, while Houthi fighters have struck at Saudi cities using drones and missiles. The group’s rapid push along the Red Sea and assaults that damaged Saudi Arabia’s East-West oil pipeline have extended Tehran’s operational reach in the war, raising concerns about global oil supplies.
As hostilities broaden into a new theatre, the United States tightened its guidance for travel to Saudi Arabia by banning government employees from traveling within 20 miles (30 km) of the Yemen border.
Even as reports of renewed clashes circulated, President Trump told reporters on Wednesday evening: "Well, hopefully we are towards the end of the war." He added: "They want to make a deal. We'll see how that works out," referring to Iran, and said he had heard from Iran "directly", without elaborating.
Trump's remarks follow shifting goals and timelines he has previously set for the conflict, which began on February 28 when the U.S. and Israel attacked Iran and Iran struck Israel and U.S. bases in Gulf states.
Energy markets have been sensitive to the spread of fighting. The extension of hostilities into Yemen threatens to worsen an already strained global energy supply, which has been disrupted by the war's impact on shipping through the Strait of Hormuz. Before the conflict the strait carried about 20% of global oil and LNG flows, a critical artery for energy shipments.
Traders say that a prolonged closure of Saudi Arabia's East-West pipeline could remove as much as 4% of global oil supply. Saudi authorities have not announced when pipeline operations might resume.
On Wednesday Brent crude hovered near $108 a barrel, a level close to its highest since May, while the politically sensitive U.S. retail price of diesel hit another record above $6.30 a gallon.
Oil prices eased in early Thursday trade after reports that Saudi Arabia was offering additional crude cargoes through Oman, a development that tempered fears of supply disruption. By 00:49 GMT Brent crude futures had fallen $1.24, or 1.2%, to $104.59 a barrel. U.S. West Texas Intermediate futures declined $1.14, or 1.1%, to $101.29.
The rise in oil and gas prices tied to the U.S.-Israeli campaign against Iran has become a notable political issue for President Trump’s Republican Party ahead of the November midterm elections.
Separately, Axios reported late on Wednesday that President Trump was expected to meet Gulf leaders on the sidelines of the U.N. General Assembly on Tuesday to discuss next steps in the conflict. Citing unidentified sources, that report said the planned discussions would involve leaders or foreign ministers from the Gulf Cooperation Council countries: Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman. The State Department and the White House did not respond to requests for comment.
On the ground, the Houthis released battlefield footage showing fighters seizing armored vehicles from forces aligned with the Saudi-backed government in southern Yemen. The video also depicted warplanes overhead and large explosions sending plumes of smoke into the sky from desert dunes.
Houthi military spokesman Yahya Saree said his group had launched new drone and missile strikes on the major Saudi Red Sea oil port of Yanbu and on a southern Saudi airbase at Khamis Mushait, though he did not specify when those strikes occurred. Saree also claimed the Saudis had carried out as many as 450 air strikes on Yemen this week.
Officials in the Saudi-backed government that controls southern Yemen acknowledged that their forces and Saudi Arabia were conducting air strikes on Houthi positions, while Riyadh has not publicly confirmed the tally. Saudi Arabia has led a coalition fighting the Houthis since 2015. The conflict had been relatively quiet under a ceasefire in recent years but reignited after the Houthis declared a naval blockade against Saudi Arabia in July and fired into southern areas of the kingdom.
The widening of the war into Yemen and the resulting strikes on critical energy infrastructure have kept market attention on supply risks and on diplomatic efforts to prevent further escalation. For now, oil benchmarks remain elevated compared with earlier in the year, and authorities are taking precautionary steps, including travel restrictions for government personnel, in response to the expanding theatre of conflict.
This developing situation continues to pose near-term challenges for energy security, regional stability and political dynamics ahead of scheduled elections in the United States.