Middle East Tensions Escalate with Houthi Naval Blockade Threat and U.S.-Iran Mediation Efforts

The U.S. dollar is wavering amidst conflicting signals from the Middle East, as Yemen's Iran-aligned Houthis have declared a naval blockade on Saudi Arabia, raising concerns over global energy supplies. Simultaneously, hopes for de-escalation persist after Tehran reportedly received a 10-day ceasefire proposal from mediators in efforts to salvage a June interim deal between the U.S. and Iran, despite recent exchanges of attacks.