Yemen government claims territory gains near Bab el-Mandeb strait

Yemen’s internationally-recognized government, backed by Saudi Arabia, has reported reclaiming areas near the strategic Bab el-Mandeb strait from the Houthi movement. The Presidential Leadership Council, led by Rashad al-Alimi, stated that government-aligned forces have taken control of positions including Dhubab and an airstrip, advancing towards Mocha. This development comes amidst ongoing clashes in the region, with the Houthis denying these claims. The situation underscores the ongoing volatility in Yemen, with strategic control of the Bab el-Mandeb strait remaining contested. Key Takeaways Market behavior suggests decreased probability of Houthi forces entering Aden by October 31, 2026. Recent territorial claims by Yemen’s government align with scenarios where Houthi advances are limited. Pricing indicates a potential reassessment of Houthi military capabilities in the region. What to Watch Observers will focus on any further territorial shifts near the Bab el-Mandeb strait and the strategic areas surrounding Aden. Developments such as confirmed Houthi advances or setbacks could influence market perceptions of the likelihood of Houthi forces entering Aden. The response of Saud...