• Yemen civil war: what sparked latest escalation and who is involved?

The United Arab Emirates has agreed to re-enter the Yemen conflict by resuming payments to some government forces fighting Iran-aligned Houthis in the south, according to sources in Yemen. In return, Saudi Arabia has agreed to provide air cover for the anti-Houthi force.

The new cooperation agreement is the first tangible sign that the deep rift between the UAE and Saudi Arabia over Yemen’s future is starting to be healed – if only because the advance by Houthi forces across Yemen has alarmed all the rival Gulf state rulers.

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• Larry Elliott: the global economy is muddling through. But a storm is coming

An accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the heavily indebted sector.

South Korea’s benchmark Kospi 200 index, which is heavily skewed towards the companies that make memory chips, fell more than 8% overnight to a six-month closing low, triggering circuit breakers that brought trading to a halt at various points.