Houthi Attacks Test Saudi Arabia's Oil Export Resilience

Saudi Arabia's oil export resilience has been threatened by recent Houthi missile attacks on vital infrastructure, raising doubts over its ability to maintain production and export rates. The attacks targeted several energy sector facilities in the south of the country, causing fires and a temporary shutdown at some locations.

Kate Dourian, non-resident fellow at the Arab Gulf States Institute and a fellow at the Energy Institute in London, noted that Saudi Aramco's spare capacity allows it to bypass disruption in the Strait of Hormuz without cutting production or exports. However, if continued Houthi attacks force oil tankers to take more costly shipping routes or temporarily shut down production facilities, it may prove more difficult to maintain production rates.

Experts warn that if hostilities continue, it is likely to have an impact not just on Saudi Arabia's oil exports, but also its wider investment and diversification plans. The country has invested in relations with its international allies, including the recent joint signing of a defence pact with Turkey and Pakistan.