Secret Diplomacy Between US and Houthis in Oman

Last weekend, representatives of the United States and Iran-backed Houthi group held secret negotiations in Muscat, Oman. These talks occur amidst escalating tensions in Yemen as Houthi control has expanded along the Red Sea coast, increasing the strategic importance of the Bab el-Mandeb Strait and putting further pressure on Saudi Arabia. The meetings reportedly took place at the US Embassy in Muscat with Oman acting as a facilitator. According to sources, Houthi representatives assured American officials that they have no intention of attacking U.S. vessels and remain committed to the ceasefire agreed upon in 2025. A Yemeni source stated that the group would not target Israeli or commercial ships except those belonging to Saudi Arabia, leaving an important market risk intact. The potential impact on markets is significant, particularly if diplomatic efforts can de-escalate tensions between Houthi and Saudi forces, which could lead to a more optimistic revaluation of oil prices and risk assets. This article was written by Giuseppe Dellamotta for InvestingLive.com.