Saudis pound Yemen, Houthis fire at Saudi, as Middle East war spreads
XLE•Energy supply risks rise as violence spreads
Sources told Reuters that U.S. officials had held a meeting with the Houthis over the weekend in Oman, at which the group said it had no intention of attacking American vessels and was committed to a ceasefire reached with the U.S. last year.
The extension of the war into Yemen threatens to worsen the global energy supply shortage caused by the six-month-old U.S.-Israeli war on Iran, which has disrupted shipping through the Strait of Hormuz.
The price of Brent crude hovered around $108 a barrel on Wednesday LCOc1, close to its highest levels since May. The politically sensitive average retail price of diesel fuel in the United States hit another all-time high above $6.30 a gallon for the first time.
Traders say a prolonged closure of Saudi Arabia's East-West Pipeline could cut off as much as 4% of global oil supply. Saudi Arabia has not said when operations might resume, but U.S. Energy Secretary Chris Wright told CNBC on Tuesday that crude oil should be flowing through the pipeline within days.




