Houthi Attacks Send Oil Prices Soaring Amid Escalating Conflict

The escalating Houthi attacks on Saudi Arabia's energy infrastructure and critical Red Sea export routes have increased the upside risk for oil prices, according to Middle East expert Allison Minor. In an interview with CNN's Fareed Zakaria GPS, Minor stated that global oil prices are unlikely to decline significantly in the coming months due to the disruptions.

Minor noted that Saudi Arabia has become increasingly dependent on the Red Sea to export its oil, around 4 million barrels a day in July, as the Strait of Hormuz has been disrupted due to the Iran conflict. The Houthi movement is exploiting this dependence and has captured additional territory along Yemen's Red Sea coast and strategic islands near the Bab el-Mandeb Strait.

Minor accused Iran of encouraging greater Houthi involvement and 'stoking the flames' of the Yemen conflict, which has led to a series of retaliatory actions that culminated in the latest Houthi advance. The expert noted that Saudi Arabia is in a difficult strategic position due to its previous military campaign in Yemen failing to defeat the Houthis and the weakness of the internationally recognized Yemeni government.

The Trump administration's reluctance to intervene in the conflict is also contributing to growing frustration between President Donald Trump and Saudi Crown Prince Mohammed bin Salman, according to Minor. The expert stated that this hesitation has exposed limits on what American military power can accomplish in the region and may leave Saudi Arabia more exposed to attacks on its oil infrastructure.