BREAKING: The Trump administration made a deal with the Houthis — reportedly promising not to strike Houthi-held territory or support Saudi-backed forces, in exchange for keeping the Bab el-Mandeb open to shipping, per Reuters.
It came just days after Donald Trump rejected the Saudi Crown Prince's request for U.S. strikes on the Houthis. Crown Prince Mohammed bin Salman called Trump twice asking for American firepower. Trump refused both times.
The meeting was held at the U.S. Embassy in Muscat. The Houthi delegation included senior official Mohammad Abdulsalam, who is under U.S. sanctions. The Houthis told U.S. officials they had no intention of attacking American vessels and were committed to the 2025 ceasefire — except those belonging to Saudi Arabia.
The meeting also came just days after the Houthis captured Yemen's entire Red Sea coastline and Perim Island in the Bab el-Mandeb, routing Saudi-backed forces.
Buckle up for the week of the year.
9 days ago, President Trump threatened to "stop trading" with all countries that the US has a trade deficit with if the Fed does not CUT rates.
On Wednesday, the Fed will release their September interest rate decision.
Currently, markets believe the Fed will HIKE rates on Wednesday.
In other words, the market now expects Fed Chair Warsh to make the exact opposite policy decision that President Trump wants, just 3 months after he was appointed.
If the market is correct and President Trump follows through on his threat, global trade is about to take a major turn.
This move would effectively cut off trade with ~50% of all US trading partners, including Mexico, China, Taiwan, Germany, Japan, South Korea, Canada, and India.
Turn on our post notifications at @KobeissiLetter to receive real time analysis as the week progresses.
BREAKING: The Royal Saudi Air Force has bombed its own allies in Yemen, the Saudi-backed Giants Brigades, on the Bab el-Mandeb coast south of Mocha overnight, with dozens of casualties, per initial reports inside Yemen.
As Mocha fell Thursday, Yemeni commanders said the Saudi air cover they were promised never arrived. When the strikes came, they struck their own Saudi-backed forces. Yemen's entire Red Sea coast is now Houthi-controlled.
Six Islamist gunmen hijack an Indian Airlines jet on takeoff from New Delhi and force it to fly to Lahore, Pakistan, where they release the 71 passengers.
Pakistani commandos storm the airplane and arrest the hijackers without bloodshed.