Yemen's internationally recognized government has reclaimed control of the strategic oil province of Hadramout after a Saudi-backed military operation forced separatist fighters to withdraw. The move marks a pivotal moment in the country's decade-long conflict, reshaping power dynamics in the resource-rich south.
Key Cities Secured
Government troops entered Mukalla—Hadramout's coastal capital—on January 2, 2026, following intense Saudi airstrikes. Witnesses reported soldiers patrolling streets while local authorities urged residents to protect infrastructure. Pro-government tribal fighters reportedly clashed with looters at Al Rayyan airport amid the chaos.
Strategic Withdrawals
STC forces also retreated from Seiyun, Hadramout's second-largest city, and key sites in Al-Mahrah province without resistance. Yemeni officials confirmed full control of military bases and government buildings, though tensions remain high as displaced fighters regroup.
Diplomatic Moves
The Southern Transitional Council (STC) acknowledged Saudi Arabia's call for dialogue while maintaining its independence aspirations. This development comes weeks after the STC declared plans for a 2028 southern independence referendum—a timeline now thrown into question.
Energy Stakes
With Hadramout holding 80% of Yemen's remaining oil reserves, analysts say the takeover could boost government revenues. However, challenges persist: Saudi Arabia and UAE-backed factions continue vying for influence, while Houthi rebels control northern territories.
🔍 Why it matters: This shift could impact global energy markets and reshape Middle Eastern alliances in 2026. Young professionals tracking emerging markets should watch how stabilized oil production affects regional trade flows.
