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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting a significant shift in US policy toward the Yemen conflict, reports indicate that President Trump gave his support to Saudi Crown Prince Mohammed bin Salman for an attack on Sanaa Airport. This backing reportedly occurred during a phone call last Friday, preceding Saudi airstrikes aimed at preventing an Iranian aircraft from landing. In retaliation, Houthi forces launched missile and drone strikes against a Saudi airport and issued warnings for aircraft to avoid Saudi airspace.
This escalation effectively ends a years-long truce, raising concerns in global markets regarding potential disruptions to energy supplies if Saudi oil infrastructure is targeted. Historically, geopolitical tensions near the Bab el-Mandeb strait and regional oil facilities increase the risk premium on crude prices. Per market data, traders are closely monitoring any direct threats to Aramco facilities, as previous attacks in prior years have led to sharp volatility in international oil benchmarks.
Looking ahead, investors are awaiting the US EIA Weekly Petroleum Report scheduled for July 8, 2026, to assess inventory levels amid these tensions. In the absence of current instrument price data, market direction remains heavily dependent on military developments on the ground. Additionally, the FOMC Minutes release on the same day will provide insight into how policymakers view geopolitical risks and their subsequent impact on global inflation.
Update: Geopolitical risks have expanded as increased Iranian-linked vessel traffic was recorded in the Strait of Hormuz ahead of a US blockade set to begin Wednesday. These developments intensify pressure on global energy supply chains at one of the world's most critical maritime chokepoints, adding a new layer of complexity to the regional security outlook.