Houthi Rebels Threaten Saudi Arabia as Oil Prices Soar

The Iran-backed Houthi rebels have announced plans for more attacks on Saudi Arabia as they gain control of strategic territory surrounding the Red Sea and its Bab el-Mandeb Strait. The move comes after a series of drone strikes launched from Iraq hit the East-West Pipeline, also known as Petroline, which carries up to 7 million barrels of crude oil daily across Saudi Arabia.

The pipeline's closure will be for several weeks, adding upward pressure on global energy prices and political pressure on the White House to intervene. Houthi military spokesperson Yahya Saree said in a statement that the rebel group would continue 'qualitative military operations deep inside Saudi as long as the unjust aggression against our people continues.'

Saudi Arabia's Crown Prince Mohammed bin Salman met with the top U.S. military commander in the Middle East to discuss the latest developments in the region. President Donald Trump downplayed the role of hostilities in the Middle East in the rise of U.S. energy prices, stating that oil prices will fall when the Iran war ends.

The national average gas price reached $4.31 on Monday, while diesel hit a record high of $6.23. The International Energy Agency cut its projection for average global supply by 1.3 million barrels per day and delayed its expectation for a full recovery in Middle East supply until next year.