The briefing for Friday, September 11.

Iran-backed Houthi rebels took control of Yemen's port city of Mokha on Thursday, according to Houthi and Yemeni officials cited by the Associated Press and BBC. The city sits about 75-80 kilometers from the Bab el-Mandeb Strait, a critical waterway connecting the Red Sea and Gulf of Aden through which roughly 12% of the world's goods typically pass. Residents described Houthi forces patrolling the streets, shuttered markets, and families fleeing toward the government-held city of Aden.

The takeover marks the Houthis' biggest territorial gain since a 2022 truce ended the initial phase of Yemen's civil war. The rebels also reportedly seized Zuqar Island in the Red Sea and made advances in Taiz province, according to Yemeni military sources. Hundreds have reportedly been killed and thousands displaced since the Houthi offensive began roughly a week ago, and a Saudi-led coalition has carried out air strikes in response.

Analysts say the advance gives Iran added leverage in its broader standoff with the United States. The Bab el-Mandeb's importance to global oil supplies has grown as fighting has disrupted tanker traffic through the Strait of Hormuz, and shipping through the strait has already fallen by roughly 60% since Houthi attacks began in late 2023. The Houthis said they pose no threat to international shipping but reiterated a blockade on Saudi vessels, and experts warn the group could further endanger shipping lanes by laying mines, mirroring tactics used by Iran's Revolutionary Guard in Hormuz.

U.S. diesel prices hit a new record Friday, surpassing $6 a gallon on average for the first time as the war between the U.S. and Iran continues to disrupt global fuel supplies, according to AAA. The national average of $6.05 is up from $5.85 a week earlier and $3.70 a year ago. Because diesel powers much of the freight and delivery network, higher costs are rippling into food prices, online order fees, and package shipping costs.

Wholesale inflation also picked up last month, with the Labor Department's producer price index rising 5.4% year-over-year in August, up from 4.7% in July, the AP reported. Officials attributed the increase to elevated oil and gas prices stemming from the Iran war. The data feeds into the Federal Reserve's preferred inflation gauge and will factor into the central bank's policy meeting next week, where traders now see roughly a 70% chance of a rate hike.

Mortgage rates climbed for a third straight week, with the average 30-year fixed rate reaching 6.76%, the highest level in more than 14 months, according to Freddie Mac. Both mortgage rates and Treasury yields have risen this year largely due to inflation worries tied to the war-driven oil price surge. Fed Chair Kevin Warsh signaled last month that the central bank may have "more work to do" on inflation, fueling market expectations of a rate increase at the Fed's Sept. 15-16 meeting.

Together, the three trends illustrate how a distant military conflict is translating into concrete costs for American households and borrowers. Oil prices topped $100 a barrel this week for the first time in months, and President Trump has said he does not expect relief before November's midterm elections, raising the political stakes for the administration as consumer frustration builds.

The Trump administration on Wednesday proposed a sweeping overhaul of the 2030 census that would exclude undocumented immigrants, asylum seekers, and others without permanent legal status from the population count, according to the AP. The plan would also eliminate certain demographic questions, including some related to race and ethnicity, and is reportedly considering removing questions about LGBTQ+ identification as well.

The Census Bureau argued in a Federal Register posting that people without legal status lack "sufficient tie and allegiance" to be counted as "true inhabitants," and said the census "should be colorblind." Critics, including data researcher Beth Jarosz of the Association of Public Data Users, called the proposal "unprecedented" and warned it would create undercounts that distort resource allocation and political representation.

Census figures determine how House seats and Electoral College votes are apportioned among states, meaning an incomplete count could dilute political representation in areas with large immigrant populations. Race and ethnicity data, collected on the census since 1790, is also widely used by researchers and advocacy groups to track discrimination, wealth gaps, and public health needs. Advocacy leaders, including Manjusha Kulkarni of the AAPI Equity Alliance, said removing this data would send a harmful message to affected communities and hamper efforts to serve them.

The 4th U.S. Circuit Court of Appeals ruled Thursday that the Trump administration's policy of detaining immigrants without the possibility of bond is illegal, becoming the ninth federal appeals court to reject the policy, according to the AP. In a 2-1 decision, the majority likened the policy to some of the darkest episodes in American history, including the mass detention of Japanese Americans during World War II and Chinese immigrants in the late 1800s.

The ruling deepens a circuit split, with two other appeals courts having upheld the administration's mandatory detention policy. That split means immigrants in some parts of the country, including Texas and Louisiana, face additional barriers to seeking release while others are entitled to bond hearings. The Department of Homeland Security said it remains "confident in its legal position" and noted it has already asked the Supreme Court to weigh in.

The policy stems from guidance issued last year that expanded mandatory detention—traditionally reserved for people arrested at the border—to immigrants arrested anywhere in the U.S. interior. The administration argues a 1996 law authorizes this approach, though most federal appeals courts have disagreed. With the circuit split widening, legal observers say Supreme Court review of the issue is increasingly likely, a case that could reshape due process protections for millions of noncitizens.

Brazil's Supreme Court canceled a second consecutive session of deliberations on Thursday, an unusual move highlighting a deepening institutional crisis, according to the AP. Chief Justice Luiz Edson Fachin postponed proceedings until Tuesday, when the full 10-justice court is expected to consider whether Justice Alexandre de Moraes should be investigated over alleged ties to the owner of a failed bank.

The turmoil began Sept. 1 when Justice André Mendonça, a Bolsonaro appointee, unsealed federal police documents showing banker Daniel Vorcaro had sought legal advice from de Moraes. De Moraes, who gained prominence for sentencing former President Jair Bolsonaro to 27 years in prison for an attempted coup, has since requested an inquiry into Mendonça for allegedly interviewing the banker without proper oversight.

The crisis has spilled directly into Brazilian politics ahead of October's national elections, with both President Luiz Inácio Lula da Silva and his electoral rival, Sen. Flávio Bolsonaro, demanding investigations into the justices along party lines. Competing court decisions this week even led to the removal and reinstatement of the federal police director-general, illustrating how the judicial infighting is now affecting other branches of government just weeks before voters go to the polls.