President Trump has publicly affirmed ongoing communication with Yemen’s Houthis and stated that the group has agreed not to target U.S. forces or shipping, leading the administration to suspend offensive strikes against Houthi positions while limiting U.S. involvement to intelligence and targeting support for Saudi Arabia. This arrangement, brokered in part through Oman, has held amid renewed ground offensives by Saudi-backed Yemeni government forces against Houthi positions in Taiz and other fronts, alongside Houthi missile and drone attacks on Saudi infrastructure. Recent escalation in displacement and civilian casualties has prompted U.S. diplomatic adjustments in Riyadh, but the administration continues to prioritize avoiding direct military entanglement in Yemen. Traders are monitoring statements from both sides and any shifts in Red Sea navigation incidents for signs of strain on the bilateral understanding.