Trump to meet Gulf leaders as US pursues Yemen ceasefire talks

President Donald Trump is set to meet with Gulf leaders, while U.S. officials have engaged in discussions with Yemen’s Houthi movement regarding a ceasefire in the ongoing Yemeni conflict. The decision by the United States to refrain from military intervention in Yemen, opting instead for diplomatic discussions, appears to reflect a strategic shift in handling the volatile situation. The talks with the Houthis suggest a possible diplomatic opening, although the conflict remains unstable with occasional violations of the ceasefire. This move comes amidst broader regional tensions and efforts to stabilize the Middle East. Key Takeaways The announced meetings and diplomatic engagement appear to indicate a potential shift towards negotiation over military action in Yemen. Markets have shown a slight uptick in the likelihood of US-Iran peace talks by the end of 2026, suggesting optimism about regional diplomatic efforts. The decision against U.S. intervention in Yemen appears consistent with a broader strategy to use diplomacy as a tool in the conflict. What to Watch Observers will be looking to see if these diplomatic efforts lead to concrete outcomes, such as a more stable ceasefire i...