Saudi Arabia has agreed to a limited cease-fire in several areas of Yemen including the capital Sana’a, which is controlled by Iranian-backed Houthi rebels, as part of broader efforts to end a four-year conflict that has threatened to escalate into regional war.
A Yemeni government official and a diplomat said attempts were underway to expand the truce. Saudi officials couldn’t immediately be reached for comment.
Last week, the Houthis announced a unilateral halt to the hundreds of drone and missile attacks that have targeted OPEC’s largest producer in recent years.
The apparent breakthroughs follow a devastating attack on major Saudi oil facilities that briefly halved the country’s output and rattled global markets this month. Yemen’s Houthis said they carried out the attack using a swarm of unmanned aircraft, but the U.S. has said Iran was responsible.
Houthi Rebels Announce Halt of Drone and Missile Attacks
Oil fell after Friday’s news, first reported by Dow Jones, that a partial Yemen cease-fire was in place. Crude had already been heading for a weekly decline as Saudi Arabia is about a week ahead of its repair schedule following the attack on Abqaiq and a nearby oil field, and is pumping more than 8 million barrels a day, according to people familiar with the matter.