Yes he is. And so is Eagle.
Here is Eagle's side of it, taken from the offical plot guide.
Eagle, after being upgraded for CvS2 (Then ported to Double Upper), is most
likely a tribute to Freddie Mercury of Queen. His win quote, "The show
must go on", is a heavy indicator of this. I don't believe he was such in
SF1, but when Capcom upgraded him for CvS2, they made him as such. Freddie
Mercury was gay, thus Eagle is apparently gay, too. Many of his quotes in
the Japanese version of CvS2 show this, beyond the point where you can just
say he's weird (He even tells Morrigan that she'll never be able to seduce
him for reasons he's not going to elaborate on, and tells Rock that a young
boy like Rock needs 'all kinds of' experiences' :P). This was censored a
little for the US version of CvS2, but you can tell he's still gay there,
too. Many of Eagle's win quotes in SFZ3 for the Gameboy Advance are along
the same lines. It's not just Eagle's own quotes, either. Guile in CvS2
(most character to character quotes are in the Japanese version, only, as
always) remarks to him, "There's guys like you in the military, but no
thanks for me!" and Yun is just more than a bit trying to keep his distance
from Eagle in his win quote to him in Zero 3. Eagle also does things
like tell Sakura he doesn't care for schoolgirls and tell Chun-Li to cover
her legs :P
and here is Zangief's proof, from the same guide. (warning it's long)
....well, okay. From what Saiki TOLD me (I'm researching), Zangief IS
gay. Actually, the Japanese stereotype for a gay
man is a big hairy scantily clad (usually in something like a thong) man,
often with a mustache. Well, Zangief fits most of the bill, sans the
'stache (which I guess would be what Eagle's there for). On a side note,
although the "dislikes young women" thing was added to his bio only
recently (come SFZ3), Zangief's SUPPOSEDLY been officially gay ever since
he was first designed. HOWEVER, other people who can read Japanese have
been kind enough to try to get and dig through official sources so far, and
so far have been unable to find the official statement that states Zangief
is gay. So the newest stance the plot guide must take now is that there is
some evidence, and one of the guide's most trusted people said he got it
from official sources that Zangief was gay, BUT we have yet to be able to
dig up the source now and that guy kinda... dissappeared off the face of
the internet. More CIRCUMSTANTIAL evidence is things like Zangief's special
intro with Eagle (which MIGHT be a joke on how both men are gay, although it
could also just be a simple display of how they both have whirling moves)
and one of Zangief's win quotes to Ryu in Street Fighter Zero 3:
"I don't like projectiles, but I like you personally...."
I've been told that SFZ3 quotes like this one imply heavily that he's gay
worded in ways where the implication is meant to be obvious (but of course
could be lost in the translation when non-Japanese readers read it). The
phrase is "Omae wa suki da!", which can be a phrase for someone confessing
feelings for someone else. HOWEVER, as no official statement can be
found despite our searching, right now all I can say is that it's POSSIBLE
that Capcom meant to IMPLY a gayness POSSIBLY but not as obviously as they
did with Eagle, until further information can be turned up otherwise.
Perhaps it's just meant to be an ambiguously gay-type joke, even.
From Vasili10: And finally Zangief's Dash account. BTW, I triplechecked
"hot" and "squeezed" for any alternate interpretations, none able to be
found, so this may well be Saiki's Zangief's gay clearance point.
Being gay was backed as in supported. Various words and phrases
including "hot look", "intimate", "...but I like you!..." have
supported the supposition. But have I found or read anywhere for
Capcom to bluntly say that "Zangief wa ookama desu"
("Zangief is a homosexual") ? No I haven't at this time. Conclude from there.
Zangief's interactions with R. Mika in Zero 3 neither support nor
deny his profile statement of disliking beautiful women. He sees
and acknowledges her as a fellow wrestler, nothing more.
It's possible that "hot" in the above meant "look with absolute
concentration/sincerity", not "hot" as in a lusty kind of look, given
how the Japanese use the word "hot" differently from the West. Vasili
says that there are tons of other words they could have (would have) used
in place instead if that was what they wanted to portray, though. Possibly
they used that word as a pun on Zangief jokingly fitting the gay stereotype?
At the very least, if Zangief isn't gay, then there's an ongoing joke of him
acting and looking (according to Japanese stereotype) like it without Capcom
directly saying it. It's something that continues to persist, apparently,
given that "Beautiful Young Women" was added to his SFZ3 bio when it wasn't
there before. It's not like Capcom is shy to do this type of thing (joke?).
I mean, heck, if this is the case, then they did it AGAIN with Eagle,
anyways (who also fits the stereotype by having the mustache). Maybe that's
the meaning of Zangief and Eagle having a special intro in CvS2. Zangief
has the big hairy man half of the stereotype while Eagle has the mustache
half.
So yeah, I know what I'm talking about. I've read that guide all the way thru a few times over the years.