In the early hours of January 1st, fighting erupted along a stretch of contested territory in southern Yemen.
For months, tensions had been escalating beneath the surface.
But now the unthinkable had happened: Saudi-backed and UAE-backed forces, once aligned against the Houthi rebels, were engaging each other directly.
The uneasy coordination between Gulf powers in Yemen had fractured. Yemen’s brutal civil conflict had entered a new and volatile phase, and this time, the lines weren’t drawn against a common enemy.
They were drawn between former partners.
Within hours, military analysts and diplomats began ringing alarm bells.
Saudi Arabia and the United Arab Emirates had once stood shoulder to shoulder in Yemen and at the heart of OPEC strategy. Now, they were on opposite sides of a deepening divide.
The question for investors is simple:
What happens when the oil cartel becomes a battlefield?
Markets Blink. But the Smart Money Pays Attention.