Yemeni forces have successfully reclaimed the key Red Sea port city of Hudaydah from the Iran-backed Houthi rebels in a major counteroffensive.[8160616] The latest development comes as oil markets remain on edge over potential Middle East supply disruptions, with Brent trading around $100 a barrel.[8160616][7887912] Yemen's government had announced the launch of a major military campaign to recapture all areas of the country controlled by the Houthi rebels.[7887912] The counteroffensive, which began on October 4, has been ongoing, with Hudaydah falling to government forces after several days of intense fighting.[8160616] The city's strategic location makes it a crucial prize in the conflict, and its capture is seen as a significant victory for Yemen's government.[8160616] The Houthi rebels, who have been waging a long-running insurgency against the Yemeni government, have denied any involvement in the fighting.[8160616][7887912] The United Nations has called for a ceasefire and a return to talks to resolve the conflict, but a lasting peace remains elusive.[7887912]