ICE data showed speculative net long positions in Brent crude rose by 31,977 contracts to 233,029 in the week to Oct 13.

Analyst John Davison points out that the Houthi attacks on Riyadh International Airport and Saudi Aramco headquarters over the past week have exposed weaknesses in Saudi Arabia's defense system. Experts believe this situation is the "perfect storm" brewing for years. For over a decade, Iran has provided the Houthis with weapons, funding, and training, helping them learn to assemble drones and missiles independently. King's College London expert Krieger states that Iran not only provides weapons but also helps establish an indigenous military industrial system, making it increasingly difficult to dismantle this capability even if direct supply lines from Iran are cut off. Former Iranian Revolutionary Guard advisor Niku stated that Iran has essentially taught the Houthis how to "fish" for themselves. Meanwhile, the Houthis are diversifying their sources of spare parts, rather than solely relying on Iranian supplies. The group is also experimenting with AI in weapons development; Anthropic stated last month that a northern Yemeni group used its Claude AI to assist in developing guided rockets and ballistic missile software. On the other hand, the US war against Iran has significantly depleted the region's interceptor missile stockpile, further increasing the pressure on Saudi Arabia's air defenses. Experts point out that in terms of military technology and the development of an integrated air defense network, Saudi Arabia has not yet truly reached the level of Israel or Ukraine. Furthermore, Saudi Arabia's vast territory makes defending against air attacks more difficult than protecting Israeli or US bases. Finally, the Houthi rebels have accumulated combat experience over years of conflict and continuously upgraded their weapons technology. Experts indicate that technical assistance, supply chain diversification, and accumulated combat experience are collectively enhancing the group's military capabilities, posing more complex security challenges to Saudi Arabia.

Bank of Japan Governor Kazuo Ueda: We have been closely monitoring the impact of the weakening yen and the situation in the Middle East on inflation.