Truce on Saudi-Yemeni border drops global oil prices

The Houthis and Saudi Arabia's alliance recently reached a truce that resulted in fallen Oil trading prices.

Recently, due to the escalation of the Russian invasion on Ukraine, alongside, confrontations on the Saudi-Yemeni border the oil prices have been rising. Russia controls a large portion of the global oil supply, and there are numerous oil reserves at the crossroads of Saudi Arabia and Yemen. Conflicts surrounding these parties heavily impact the volatile oil market. Nonetheless, over the last couple days, there have been multiple changes in the Oil industry which have dropped their international trading prices.

Earlier this week, Joe Biden announced that his administration would utilize American Oil-reserves to increase national oil supply. Moreover, the European Union accepted a trade deal with the United States which stabilized their Oil issues with Russia. Furthermore, the Houthis and Saudi Arabic forces reached a truce that relieves many issues regarding Oil supply shocks.

The Saudi-Arabic government has fought against the Iran-aligned Houthis for about seven years. The Houthis are a rebellious organization based in Yemen that is at war against the Yemeni president due to his corrupt and disloyal behaviour. Abdrabbuh Mansur Hadi - the Yemeni president - was understood to be coerced by Saudi and the States into selling Yemen's sovereignty.

Nonetheless, as we move closer to the holy month of Ramadan, the Houthis and Saudi forces have accepted a ceasefire proposition.

These actions have shaken up the global oil prices - with the international prices dropping by 13%. These changes have amounted for immense losses as majority shareholders were bullish (hoping the prices rise) on Oil prices - yet - the prices have dropped by 13%, which is the largest drop in the last two years.

Conclusively, the global oil prices have fallen, or as some might say: finally stabilized since the pandemic's dusk. The oil prices have constantly been rising since 2020 and the various conflicts escalated their rise - nonetheless - these small corrective measures have done well at balancing the volatile commodity's value. For now.