Iran and Saudi Arabia held talks Thursday evening regarding “escalating tensions” in the region, specifically concerning the conflict in Yemen, where they back opposing sides. This marks the first conversation between the two nations in four months. The discussions come as attacks along crucial shipping routes in the Middle East are fueling concerns about a prolonged disruption to oil supplies. Consequently, oil prices are projected to close the week above $100 a barrel for the first time in four months. The increasing instability threatens global energy markets and raises fears of a wider regional conflict. Analysts suggest the talks signal a potential desire to de-escalate tensions, but the outcome remains uncertain. The Yemen conflict remains a key factor in regional instability.