Houthi Attacks Lift Oil Near $100; Canada Retaliates on US Tariffs

The world in brief — Houthi strikes jolt oil, Canada hits back on trade, and the yen surges ahead of a Bank of Japan decision.

Houthi strikes hit Saudi energy sites and lift oil toward $100

The Houthis, an Iran-backed Yemeni rebel group, struck energy facilities and four cities in southern Saudi Arabia, wounding at least 73 people. Brent crude, the international benchmark, jumped to nearly $100 a barrel; Riyadh vowed to respond.

The attacks followed Iran’s warning to America that it could hit energy infrastructure across the Gulf and its announcement that it is preparing to declare a “maritime exclusion zone.”

Canada imposes tariffs on 700 US goods after Trump threat

Canada imposed retaliatory tariffs on roughly 700 American products, including steel, dairy and home appliances. Donald Trump has threatened further levies in response.

On Monday he said he would bar Bombardier from selling its planes in America unless the Canadian manufacturer builds them there. The market is vital to Bombardier: about half of the 5,100 aircraft operated by its customers are based in the US.

Germany’s Merz rejects resignation after AfD win in Saxony-Anhalt

Friedrich Merz, Germany’s unpopular chancellor, said he had no intention of resigning after the Alternative for Germany’s electoral victory in the eastern state of Saxony-Anhalt.

But Mr Merz admitted “there will have to be consequences” following the success of the populist-right party. He said the collapse in support for his Christian Democrats had shaken the party “to its very foundations.”

Britain’s grid operator hands Palantir £21m deal without tender

Britain’s state-owned electricity system operator awarded Palantir a £21m ($28m) contract without inviting rival bids, arguing critical grid processes are too dependent on the American firm’s technology to run a competitive tender.

The National Energy System Operator cited a legal exemption for cases with no reasonable alternative. The deal follows the defence ministry’s £241m uncontested award to Palantir, fuelling concern about state reliance on the firm.

Yen surges past 153 on Bank of Japan rate expectations

The yen briefly strengthened past 153 to the dollar on Tuesday, its highest level in months. Expectations that the Bank of Japan may raise rates next week have nudged investors to unwind carry trades, lifting a currency that until recently had been trading at historic lows.

Analysts reckon the rebound may be more durable than the recent interventions by authorities, which had limited effect.

Argentina targets Falklands driller with criminal charges

Argentina said it would file criminal charges against Navitas Petroleum, an Israeli energy firm operating in the Falklands. Earlier this month Javier Milei, the country’s anarcho-capitalist president, ramped up his rhetoric on Argentina’s claims over the islands in a nationally televised announcement.

He later vowed to sanction oil companies drilling near the British overseas territory. All of which hints at his current domestic weakness.

French wine output falls as heat hits champagne

French wine production for 2026 is expected to be around 6% below last year’s, and champagne production 48% lower, according to France’s agriculture ministry.

Unusually hot weather and drought have made many vintners’ jobs harder, and vineyards are disappearing as consumers quaff less.

Figure of the day

25%, roughly how much less winter snow now falls, on average, in the greater Yellowstone area than in the 1950s. Read how the American West’s water is increasingly fought over.

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