Skip to content
Back to Guavy Wire
Commodities

Saudi Arabia Seeks Emergency Alliance with Israel and UAE Amid Yemen Crisis

Instruments
Oil
Share

Riyadh is facing a dire situation as it tries to fend off the Houthi threat in Yemen, which has effectively checkmated Saudi Arabia by severing two of its three vital oil-exporting routes. The Houthis have seized Yemen's strategic port city of Mocha and critical Red Sea islands, controlling Bab Al-Mandab Strait and declaring it off-limits to Saudi shipping.

The kingdom's response has been quiet, limited to celebrating minor defensive intercepts while its state pundits remain noticeably silent. It needs to abandon its diplomatic paralysis and normalize ties with Israel and the UAE, which possess the proven capability to beat back Iran and the Houthis.

Saudi Arabia spent a staggering $83 billion on defense in 2025 alone, but has nothing to show for it. The kingdom's military vulnerability is compounded by economic headwinds at home, where oil prices have hovered at $65 since 2023, forcing Riyadh deep into red ink and driving its national debt up to 35 percent of GDP.

More on Commodities

Disclaimer: Guavy is a data and market intelligence provider, not an investment adviser. The information, signals, and market analysis provided by the Guavy API and related services are for informational purposes only and are not intended as financial advice, investment recommendations, or an endorsement of any particular trading strategy. Trading in volatile markets, including cryptocurrency, carries significant risk and may not be suitable for all investors. Past performance is not indicative of future results. Users should consult with a qualified financial professional before making any investment decisions. Guavy makes no guarantee of trading profits or financial returns.

Market sentiment intelligence for apps, funds & agents

Location

729 55 Ave SW
Calgary AB T2V 0G4
Canada

© 2026 Guavy Inc