Houthi forces have struck Saudi Arabia's key east-west oil pipeline and expanded their grip on the Bab el-Mandeb Strait, a shutdown traders say could disrupt as much as 4% of global oil supply. Riyadh is weighing its response as diplomatic efforts to ease the crisis stall.
Houthi militants in Yemen launched a fresh wave of attacks on Saudi Arabia this week while pushing to strengthen their positions in key areas along the Red Sea, Reuters reported Tuesday, citing Yemeni officials. Saudi authorities are now considering how best to respond to the group's rapid advance through parts of Yemen.
Saudi officials sounded emergency alarms at a military airbase in Khamis Mushait in southern Saudi Arabia after a series of Houthi drone and missile attacks there, with similar alerts issued in three other southern cities. The Saudi-led coalition vowed to respond firmly, and the Houthis in turn accused Riyadh of launching dozens of air attacks across Yemen, according to Al Jazeera. A Houthi military spokesperson threatened to retaliate, while Houthi-aligned media said the strikes had killed three civilians. Riyadh has not publicly commented on these claims.
Saudi oil pipeline offline for weeks
The Houthis have struck a key east-west Saudi oil pipeline that has served as a major conduit for crude oil flows since Iran's shuttering of the Strait of Hormuz. The Associated Press, citing two regional officials, said the 1,200-kilometer pipeline will be offline for three to five weeks while crews repair the damage, including at a crucial pumping station. Partial use may resume during repairs, though it remains uncertain how much oil will flow.
Since late August, an average of 2.6 million to 4 million barrels per day moved through the pipeline. Traders told Reuters a prolonged shutdown could disrupt as much as 4% of global oil supply.
Houthis tighten grip on Bab el-Mandeb
The Houthis have also moved to expand their presence in the Bab el-Mandeb Strait, the waterway linking the Gulf of Aden with the Red Sea that Saudi Arabia has relied on to move oil exports given the Hormuz closure. The AP said shipping through the strait is now threatened after the Houthis captured the strategic islands of Greater and Lesser Hanish, taking them after hundreds of allied Yemeni government forces withdrew. Last week the group also seized the port city of Mokha and the island of Mayun, and government forces are attempting to fight back.
This escalation in geopolitical risk has coincided with fading hopes for a diplomatic resolution. A meeting between Iran and Gulf countries in Oman, originally slated for Monday, was delayed, with Tehran suggesting the postponement came at Saudi Arabia's request. President Donald Trump repeated his claim that Iran wants a deal to end hostilities, a suggestion Iranian officials have rebuffed.
Against this backdrop, Brent crude prices have risen, briefly touching $109 a barrel this week, as markets await clarity on Saudi oil supplies, analysts at ING said.
Source: Investing.com
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