Saudi coalition reports missile interception and infrastructure destruction in Yemen
Tuesday’s oil trading put diplomacy and security at the center of the market’s assessment. The Wall Street Journal reported that traders weighed fresh efforts to ease Iran-related tensions and restore navigation through the Strait of Hormuz against Houthi attacks on Saudi Arabia. Both December contracts for Brent crude and West Texas Intermediate traded lower.
The diplomatic track centered on Tehran, where senior officials from Iran, Saudi Arabia, Pakistan and Turkey met on Monday. A joint statement issued after the meeting said the countries agreed to continue talks on regional peace and security. Saudi Arabia’s Foreign Ministry said the visit was part of efforts to reduce tensions and support mediation by Qatar and Pakistan. The ministry called for opening channels of negotiation to prevent a return to military escalation in the region.
On a separate track, Oman said discussions with Iran had produced an outline for a temporary arrangement to restore free navigation through the Strait of Hormuz, although political obstacles remained. Implementing the arrangement would require compromises by both Washington and Tehran, Omani Foreign Minister Badr Albusaidi said Monday in a speech at the University of Cambridge.
Tuesday’s market reaction also reflected the Saudi-led coalition’s security report. December Brent crude futures fell 0.8% to $114.93 a barrel, while December West Texas Intermediate futures dropped 0.9% to $100.90 a barrel, according to The Wall Street Journal. The coalition said Monday that it had intercepted a ballistic missile launched by Yemen’s Houthi militia toward Riyadh.
The coalition separately said it had destroyed four ballistic missile launchers and five tunnels used to store missiles during operations in Yemen. Regional security threats persisted despite the diplomatic efforts, The Wall Street Journal reported.