After weeks of setbacks for the Mansour Hadi Government which fled the Yemeni capital of Sanaa in September, the battle between sectarian groups has seen the nation descend into chaos. The Iranian-backed Houthi rebels have made many strategic gains with the US completely abandoning its military presence in the nation which was heralded by US President Obama as an Arab Spring “success” story. Overnight news of Saudi Arabia embarking on a bombing campaign against its southern neighbor sent oil prices rocketing higher, gaining over 7% since the announcement. With Yemen sitting at a strategic choke point for Gulf oil exports, the situation has become very serious, with the US and Egypt assisting in the Saudi bombing campaign to restore order in the nation. The operation will involve land, air, and sea units with tanks supposedly crossing into Yemen from Saudi Arabia overnight.
Yemen Disintegration Sends Oil Soaring
Daily Analysis - 26/03/2015