Houthis Strike Yemen Presidential Palace; EU-Gulf Summit Postponed Amid Rising Tensions

Yemen says the Houthis have struck the presidential palace in Aden, while the EU and Gulf states postpone their summit in Saudi Arabia amid continuing attacks. The developments mark a significant escalation in a conflict that has already reshaped regional dynamics and drawn in multiple international actors. Donald Trump also raises the possibility of a future strike on Iran using the "Mother of All Bombs," adding another layer of uncertainty to an already volatile situation. The war is reshaping Gulf finances, cutting the region's overseas investment pool by two-thirds as governments direct more spending at home. This shift has profound implications for global capital flows and the investment strategies of sovereign wealth funds. Higher energy prices cushion some economies, while Oman emerges as a relative beneficiary and Bahrain faces its own set of challenges. The uneven impact across the Gulf highlights how the conflict is redistributing economic fortunes within the region, with winners and losers emerging from the turmoil.