10,480TASI · Oct. 5 close · −0.25%

DailyDrop.

3.75USD/SAR · official pegged rate (not a live rate)
TASI10,480.00▼0.25%10/5USD/SAR3.75-0.00%10/5S&P 5007,773.95▲0.66%10/5WTI$89.43▼1.84%10/5Gold$4,156.80▼0.13%10/5
Yemen · SecurityPress ✓ 6 outlets · field claims attributed to those making them · new since yesterday’s issue

Yemeni government announces gains near Bab al-Mandab and an offensive on Sanaa; Houthis deny it and encircle Taiz

Government forces said on Monday they had taken control of Dhubab airport and cut its road to Mocha, and the coalition said 100 fighter jets took part and destroyed 324 targets. The Houthis denied this, and we found no independent confirmation.

After Rashad al-Alimi announced the start of operations on Sunday, Yemeni government forces announced on Monday, October 5, that they had retaken key positions near the Bab al-Mandab strait and the Dhubab area on the west coast, according to Al Jazeera, The National, Qatar Tribune and ITV. The government spokesman said the “Giants Brigades” and the “Nation’s Shield Forces” had taken control of Dhubab airport and cut the road between Dhubab and Mocha, and that hundreds of Houthi fighters were surrounded and called on to surrender.

The Houthi Saba news agency denied this and called it untrue. These are claims by the two parties to the conflict, and we have seen no satellite imagery or independent testimony that settles the matter. The government also announced a “strategic offensive” on Sanaa, as part of an operation named “Yemen Dawn” in English, and al-Alimi said the aim was to restore state institutions. The Houthi-run health ministry said that air strikes on Sanaa killed civilians; we have not verified the number.

By contrast, on Sunday the Houthis took the town of Turbah and cut the main road between Taiz and Aden, according to Agence France-Presse and Associated Press, and the Institute for the Study of War said this limits government forces’ ability to supply their lines in Taiz. The Yemeni army claimed it had put 1,747 Houthi fighters out of action in 1,122 operations, a toll that cannot be verified.

In DailyDrop’s reading, the picture is balanced between an announced gain on the coast and a more clearly confirmed loss at Taiz. Today, Tuesday, we are watching for: independent confirmation or denial of government control of Dhubab, the course of the fighting in Taiz and Marib, and coalition statements.

Open the story and DailyDrop’s take
By the numbers
100fighter jets took part in the operations, according to the coalition
324“high-value” targets destroyed, according to the coalition, without independent confirmation
1,747fighters “put out of action”, according to the Yemeni army; an undocumented figure
Saudi Arabia · DefencePress ✓ 5 outlets · joint statement attributed to its signatories

Saudi Arabia, Pakistan and Turkey agree to activate joint defence and deploy forces in the Kingdom after Houthi attacks

Saudi Arabia, Pakistan and Turkey issued a joint statement on Monday, October 5, after an emergency meeting in Riyadh on the “Mecca Joint Defence Agreement” signed in August, according to Gulf News, Khaleej Times, L’Orient-Le Jour and Cyprus Mail. The three countries agreed to begin implementing collective-defence commitments and to quickly deploy agreed forces and capabilities in Saudi Arabia, under “approved arrangements” and in accordance with each country’s national laws.

The statement referred to the recent attacks on Saudi Arabia, notably those that targeted Mecca and Medina, without naming the Houthis. It did not specify the forces’ role, size or arrival date, and the original agreement had no details on military commitments. In DailyDrop’s reading, what matters is what is announced later about where forces will be deployed, and whether they will be limited to defence inside Saudi Arabia.

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Word of the day
Mecca AgreementDefence

An agreement signed in August between Saudi Arabia, Pakistan and Turkey, which treats an armed attack on any one of them as an attack on all.


Markets · TadawulSingle source: Argaam · figures from the closing report

TASI falls about 0.25% to 10,480 points after Sunday’s rebound, and Saudi National Bank drops 3%

TASI closed on Monday, October 5, at 10,480 points, down 26 points, or about 0.25%, according to an Argaam report, after Sunday’s rebound that ended four falling sessions. The session high was 10,500 points and the low 10,417, and trading value was about 3.6 billion riyals.

Al Rajhi Bank shares fell 1% to 63.10 riyals on volume of about 7 million shares, and Saudi National Bank shares dropped 3% to 38.60 riyals, while Saudi Fisheries led the gainers, rising 10% to 51.90 riyals. We found no second source for these figures, so we present them attributed to Argaam and offer no explanation for the move. The riyal’s official rate is pegged to the dollar at 3.75.

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Markets · United StatesPublished closing data · we found no single confirmed cause

S&P 500 rises 0.66% to 7,773.95 points, while West Texas Intermediate falls 1.84%

The S&P 500 closed on Monday, October 5, at 7,773.95 points, up 0.66%; West Texas Intermediate fell 1.84% to $89.43 a barrel, and gold dropped 0.13% to $4,156.8 per ounce, according to closing data.

We found no documented explanation from two sources for the fall in oil despite the escalating fighting in Yemen, so we offer no cause. These figures arrive after Tadawul’s Monday close, so Tuesday’s Saudi session opens on their basis, which does not necessarily mean the Saudi index will follow them.

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Saudi Arabia · SecurityPress ✓ 5 outlets · coalition figures attributed to it

Coalition: 100 fighter jets support Yemeni forces; Houthis claim to have targeted Riyadh airport and an Aramco refinery

The spokesman for the Saudi-led coalition, Major General Turki al-Maliki, said on Monday that the coalition is providing round-the-clock air support to Yemeni forces and securing air cover for Bab al-Mandab, and that 100 fighter jets took part and 324 “high-value” targets were destroyed, according to The National, News on Air and Ynet. Riyadh pledged to support the Yemeni government until state institutions are restored.

The Houthis said they targeted Riyadh international airport and an Aramco refinery, and Agence France-Presse reported hearing powerful explosions in the capital on Monday evening. The Saudi authorities did not confirm the claim, the cause of the explosions or the extent of any damage, and the coalition had earlier described previous claims as “misleading”. The tally of air strikes varies in reports from 26 to 97, so we do not rely on a single figure.

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In brief
  • The S&P 500 closed at 7,773.95 points, up 0.66%Closing data
  • West Texas Intermediate $89.43 (−1.84%) and gold $4,156.8 (−0.13%)Closing data
  • TASI falls 26 points to 10,480 on trading value of 3.6 billion riyalsArgaam
  • Saudi Fisheries shares rise 10% to 51.90 riyalsArgaam
  • The Houthis took Turbah and cut the Taiz–Aden road on SundayAgence France-Presse, Associated Press
  • The Yemeni army claims it put 1,747 Houthi fighters out of action, without independent verificationAl Jazeera
  • Three-way agreement to deploy Pakistani and Turkish forces in Saudi Arabia, without detailsGulf News, Khaleej Times
Seven minutes every morning, one front page

Unverified — what we could not confirm

“The Houthis burned the Riyadh refinery and three tanks.” A claim from a news-aggregation site for which we found no confirmation. The National published an Agence France-Presse photo showing flames near an Aramco facility south of Riyadh on October 3, and the Saudi authorities did not confirm an attack.
“Yemeni army: 1,747 Houthis put out of action in 1,122 operations.” An official claim that did not break down the numbers of dead and wounded and is not verified by any independent source, according to Al Jazeera.
“The Houthis struck Jazan and Najran airports, the Rabigh refinery and bases in Abha and Khamis Mushait.” A claim by Houthi spokesman Yahya Saree on Monday evening. The Saudi authorities did not confirm any damage, and although the Gulf Cooperation Council secretary-general attributed attacks on Jazan and Najran airports to the Houthis and condemned them, we do not count the damage as confirmed.
Glossary · dotted words — economic, security and political terms explained in the context of the story. The list grows every day.
INSIDEYemeni government announces gains near Bab al-Mandab and an offensive on Sanaa; Houthis deny it and encircle TaizYemen · SecuritySaudi Arabia, Pakistan and Turkey agree to activate joint defence and deploy forces in the Kingdom after Houthi attacksSaudi Arabia · DefenceTASI falls about 0.25% to 10,480 points after Sunday’s rebound, and Saudi National Bank drops 3%Markets · TadawulS&P 500 rises 0.66% to 7,773.95 points, while West Texas Intermediate falls 1.84%Markets · United StatesCoalition: 100 fighter jets support Yemeni forces; Houthis claim to have targeted Riyadh airport and an Aramco refinerySaudi Arabia · Security