US officials and senior Houthi representatives met at the US Embassy in Muscat over the September 13-14 weekend as Saudi Arabia suffered its gravest setback in Yemen in years after Houthi forces captured Mokha, three islands and territory overlooking the Bab el-Mandeb Strait. President Donald Trump downplayed the Houthi takeover and indicated that the United States did not plan to intervene militarily, while Vice President JD Vance acknowledged the talks, which sought to preserve Red Sea navigation and reinforce an Oman-brokered 2025 ceasefire. Trump reportedly rejected Crown Prince Mohammed bin Salman’s request for US strikes, instead authorizing intelligence sharing, target-development assistance and advisers. The Houthis pledged not to target American or Israeli shipping while retaining Saudi-linked vessels as targets. The developments threaten a trade corridor carrying roughly 12% of global commerce, Saudi oil exports and energy infrastructure, while increasing Iran’s leverage over the Bab el-Mandeb and Strait of Hormuz. Oil reached $109 a barrel and US gasoline averaged $4.23 a gallon; market pricing also indicated a moderate decline in the odds of a US invasion of Iran.