Yemen's Iran-aligned Houthis have intensified attacks on Saudi cities and energy infrastructure, advancing toward the Bab el-Mandeb Strait, a critical shipping route. The conflict has displaced at least 112,000 people, according to recent reports. Meanwhile, the US and Iran's escalating tensions have created uncertainty in global oil markets. JP Morgan has struggled to forecast oil prices, citing the unpredictability of the conflict. The bank noted it had assumed economic red lines, such as oil prices reaching $100 a barrel, that the US would not cross.
As the war between the US and Iran continues, global powers are scrambling to secure alternative shipping routes. China has upgraded its military base in Djibouti, a strategic location near the Bab el-Mandeb Strait. This move comes as the US maintains its largest military base in the region. The situation has raised concerns over the stability of international trade and energy supply chains.
The conflict has also drawn attention to the humanitarian crisis in Yemen. Tens of thousands of people have taken to the streets of Sanaa, as government forces claim to be targeting Houthi positions in the west of the country. The ongoing violence highlights the complex geopolitical tensions shaping the region.
