Saudi Arabia Plunges into Crisis as Houthi Attacks Intensify

The escalating Houthi attacks on Saudi Arabia have reached crisis point for Crown Prince Mohammed bin Salman, threatening the kingdom's economy and global energy markets.

Since this month, the Iran-backed militants have been firing at Saudi targets nearly daily, capturing more territory in Yemen and tightening their grip over the Bab el-Mandeb strait, a vital shipping route. The attacks forced Saudi Arabia to close its East-West pipeline, which carries crude oil to the Red Sea port of Yanbu.

The disruption has pushed Saudi oil production to historic lows and could complicate the kingdom's plans to diversify its economy. The closure of the pipeline is expected to last six weeks, according to Bloomberg, which would likely drive up global fuel prices and inflationary pressures.

Saudi Arabia faces mounting economic pressures, with Tarik Yousef, a senior fellow at the Middle East Council on Global Affairs, stating that 'this convergence of looming economic pressures and mounting geopolitical risks must be creating a sense of urgency.' The kingdom's economy could contract by 3.1% this year, according to Abu Dhabi Commercial Bank chief economist Monica Malik, with a possible slump of up to 4.5% if the pipeline remains closed.