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Trump Signals Iran War May Be Nearing End as Houthi-Saudi Clashes Escalate

Trump says Iran wants a deal as the seven-month war widens into Yemen, with Houthi attacks on Saudi oil infrastructure and a planned Gulf leaders' meeting at the UN.

US President Donald Trump has said he hopes the war against Iran is approaching its end, even as the conflict entered a new phase with intensified fighting between Saudi forces and Iran-backed Houthi fighters in Yemen.

Speaking to reporters, Trump said Iran "wants to make a deal" and that Washington would see how that develops. He added that he had heard from Tehran "directly" but did not elaborate. His comments came just hours after reports of fresh Houthi and Saudi clashes.

The war, now in its seventh month, began on February 28 when the United States and Israel attacked Iran and Tehran retaliated against Israel and US bases in Gulf states. The Houthis' rapid advance along Yemen's Red Sea coast and their drone and missile attacks on Saudi cities have extended Iran's reach and raised concerns about global oil supplies.

Attacks have also damaged Saudi Arabia's East-West oil pipeline. Traders warn that a prolonged shutdown of the pipeline could remove as much as 4% of global oil supply, and Riyadh has not indicated when operations might resume. The Strait of Hormuz, which carried about 20% of global oil and LNG before the conflict, has seen shipping disrupted.

Brent crude hovered around $108 a barrel, near its highest since May, while the average US retail diesel price topped $6.30 a gallon for the first time. Prices eased in early Thursday trade after reports that Saudi Arabia was offering extra crude cargoes through Oman, with Brent futures down $1.24, or 1.2%, at $104.59 a barrel and US West Texas Intermediate down $1.14, or 1.1%, at $101.29.

Rising energy costs have become a political liability for Trump's Republican Party ahead of November midterm elections.

Amid the escalation, the United States tightened its travel warning for Saudi Arabia, barring government employees from travelling within 20 miles (30 km) of the Yemen border.

Axios reported that Trump is expected to meet Gulf leaders on the sidelines of the UN General Assembly on Tuesday to discuss next steps. The meeting would include leaders or foreign ministers from the Gulf Cooperation Council states: Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman. The State Department and the White House did not respond to requests for comment.

Houthi military spokesman Yahya Saree said the group had launched fresh drone and missile strikes on Saudi Arabia's Red Sea oil port of Yanbu and the southern airbase at Khamis Mushait, without specifying when. He said Saudi forces had carried out as many as 450 air strikes on Yemen this week. Officials in the Saudi-backed government controlling southern Yemen acknowledged that their forces and Saudi Arabia's were conducting air strikes on Houthi positions, though Riyadh has not confirmed them.

The Houthis also released battlefield video showing fighters seizing armoured vehicles from Saudi-backed forces, with warplanes overhead and explosions rising from desert dunes.

Saudi Arabia has led a coalition battling the Houthis since 2015. The conflict had largely quietened under a ceasefire in recent years but reignited in July when the Houthis declared a naval blockade against the kingdom and fired at southern areas.