Yemeni Foreign Minister Designate says government wants peaceful resolution to conflict with Houthis; if Houthis continue to push us, we are prepared for escalation
Yemen's Houthi rebels have initiated a blockade on Saudi oil tankers, driving Brent crude prices above $96. With key shipping straits threatened, investors face structural energy supply risks and high volatility.
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No direct talks with Houthis, there is an Omani role. Houthis emboldened by a lack of serious international reaction to attacks on shipping. Houthis want to copy the Iranian Hormuz model in Bab Al-Mandeb. Houthis and government are exchanging fire along the frontline, but so far no offensive is taking place. Houthis want direct flights from Iran to fill gap in military support, personnel, money and weapons. Security preparation underway for protection of Yemeni oil exports.
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