FRIDAY, OCTOBER 16, 2026|No. 18860
Global Economy · Conflict

Middle East Conflict Fuels Global Economic Uncertainty, Disrupts Diesel Supply

Escalating regional conflicts, particularly in Yemen and involving Iran, are contributing to volatile oil prices, a persistent diesel shortage, and rising borrowing costs worldwide.

Buildings stand in the southwestern city of Taiz, Yemen, amidst ongoing conflict.
Buildings stand in the southwestern city of Taiz, Yemen, amidst ongoing conflict.
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Houthis claim responsibility for attack on government headquarters in Aden

The Ansar Allah Houthis issued a statement earlier announcing and taking responsibility for the attack on the government headquarters in Aden.

Yahya Saree, the Houthi military spokesperson, said the building housed what he described as a ‘Saudi war operations room’, and that any Saudi military or economic presence on Yemeni land would be a legitimate target of the armed forces.

One of those who was reportedly safe and not injured in the attack was the prime minister. He took to social media, slamming the Ansar Allah group and calling this a “terrorist attack” aimed at disrupting state institutions and preventing or hindering the process of reversing what he called a “terrorist coup” against the internationally recognised Yemeni government.

He asserted that the Yemen military operation would continue despite this attack until “every square inch of Yemen” was liberated from the control of the group, referring to continued military operations until they recapture the Yemeni capital, which fell to the Houthis in 2015.

On both sides, there seems to be a war of rhetoric, a war of narratives, in addition to the battles happening on the ground.

Each side is claiming justification for its military actions, and each side is vowing to continue fighting until its goals are achieved.

WATCH: Houthi forces attack presidential palace as Yemen war escalates

Houthi fighters have launched multiple missiles at Yemen’s presidential palace in the southern port city of Aden, killing two bodyguards of the prime minister.

Smoke was seen rising near the al-Maashiq Palace, which serves as a headquarters for Yemen’s internationally recognised government.

The prime minister and other government officials survived the attack, which officials have described as an assassination attempt.

Here’s what happened today

As we wrap up our coverage for the day, here’s a recap of the key developments:

  • At least five people were killed and 16 wounded in a Houthi attack on the presidential palace in Yemen’s southern city of Aden, according to the country’s health minister.
  • Authorities in Yemen’s Marib governorate said the Houthis have fired nine ballistic missiles and seven other projectiles at residential neighbourhoods in the city.
  • Saudi Arabia described Houthi attacks on its airports and oil facilities as “full-fledged war crimes”, while France said it has begun deploying military assets to help protect the kingdom’s energy infrastructure.
  • US Treasury Secretary Scott Bessent said Washington will continue imposing sanctions until Iran’s “coffers are empty”, after announcing measures targeting 16 individuals and 10 entities.
  • Lebanese President Joseph Aoun urged US Secretary of State Marco Rubio to press Israel to halt its attacks and destruction in southern Lebanon.
  • Israeli settlers wounded a Palestinian man in a shooting attack in Beit Ummar, north of Hebron in the occupied West Bank.

Welcome to our live coverage

We’re following the latest developments in the US-Israeli war on Iran, as tensions continue to escalate across the region.

Our coverage will bring you updates on the fighting in Yemen, attacks on shipping in the Strait of Hormuz, diplomatic efforts and the wider impact of the war.

For developments from Thursday, October 15, you can catch up on our previous live page here.

Buildings stand in the southwestern city of Taiz, Yemen, October 15, 2026. REUTERS/Anees Mahyoub

Buildings stand in the southwestern city of Taiz, Yemen, October 15, 2026. [Anees Mahyoub / REUTERS]

PAN's pipeline reviewed approximately 4 open sources for this article. No human editor reviewed this article before publication.

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