Saudi Oil Pipeline Nears Restart as Houthi Tensions Rise

Global markets are reacting to the Federal Reserve’s unanimous 25-basis-point interest rate hike, a move intended to bolster credibility and address persistent inflation. While the hike stabilizes investor sentiment, concerns persist regarding the potential for policy errors, as current inflationary pressures are primarily driven by supply shocks and regional geopolitical conflicts rather than domestic economic overheating. In the Middle East, the focus remains on restoring energy infrastructure, specifically the East-West pipeline, following Houthi attacks that have disrupted regional oil capacity. Meanwhile, sovereign wealth funds like Abu Dhabi’s Limad are aggressively pursuing strategic assets, including potential stakes in cargo operators like Atlas Air, to fortify supply chains. Concurrently, diplomatic friction is escalating between the United States and South Africa, as new visa restrictions signal a hardening stance on government policies, further complicating the regional geopolitical landscape.