Middle East oil supply looms over midterms, while Yemen seeks to root out Houthis

Key Points:

• Yemen’s deputy defense minister announced government forces have taken full control of the Bab al-Mandeb Strait and Perim Island in their campaign against Iran-backed Houthis, marking a significant development in the ongoing Iran war.
• U.S. West Texas Intermediate crude oil prices fell below $90 per barrel following increased Middle East crude exports and a G7 pledge to release 100 million barrels from emergency reserves to ease supply concerns amid the U.S.-Israeli conflict with Iran.
• Kuwait Petroleum Corporation is exploring new pipeline routes and expanding storage capacity to mitigate fuel supply disruptions caused by Iran’s blockade of the Strait of Hormuz, highlighting a regional push to secure energy logistics.
• Saudi Aramco CEO Amin Nasser warned that global oil supply pressures could intensify and that it may take up to two years to replenish stockpiles depleted during the Iran war, emphasizing the need for alternative export routes and storage solutions.
• The U.S. removed B-1 bombers from RAF Fairford in the UK due to a suspected Iran-backed terror plot near the base, with British authorities cooperating closely on the investigation, underscoring ongoing security concerns related to Iran’s regional activities.