Houthi Rebels Threaten Saudi Oil Infrastructure Amid Escalating Tensions

The Iran-backed Houthi rebels have announced plans for more attacks on Saudi Arabia's oil infrastructure, escalating tensions in the region. The Houthis claim to have carried out a large-scale attack on Saudi Arabia's King Khalid Air Base, with military spokesperson Yahya Saree stating that they will continue to launch 'qualitative military operations' deep inside Saudi territory as long as the 'unjust aggression against our people continues'.

The closure of the East-West Pipeline, also known as Petroline, has put upward pressure on global energy prices. The pipeline, which spans about 750 miles across Saudi Arabia and carries up to 7 million barrels of crude oil daily, was hit by drone strikes last week that Saudi Arabia blamed on an Iran-backed militia.

U.S. President Donald Trump downplayed the role of hostilities in the Middle East in rising U.S. energy prices, stating that 'The World’s Diesel price rise is mostly caused by the Russia/Ukraine War, not Iran'. He also predicted that oil prices will fall once the conflict with Iran is over.

The International Energy Agency (IEA) has 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.