Houthi Attack on Saudi Arabia Triggers Global Oil Supply Concerns
The Houthis' recent attack on Saudi Arabia has heightened tensions in the Middle East, underscoring concerns about global oil supplies. The group launched dozens of missiles and drones at a military airbase in southern Saudi Arabia, targeting aircraft hangars, radar systems, runways, and ammunition depots. This attack comes amid escalating conflict in Yemen, where the Houthis have rapidly advanced in recent days.
The Houthi offensive has captured territory including Perim Island at the mouth of the Red Sea, while a separate attack knocked out Saudi Arabia's east-west pipeline, a key route for Gulf oil exports. The disruption could cut off as much as 4% of global oil supply, according to traders. Crude oil prices surged by over 4% on Monday before paring gains after US President Donald Trump signaled a possible diplomatic opening with Iran.
The planned meeting between Gulf states and Iran has been postponed at the request of Saudi Arabia, while Iran published a list of 77 ships it claims have violated its operating protocols in the Hormuz Strait. US Energy Secretary Chris Wright said that the number of ships crossing the strait covertly with US support is increasing.