Escalation in the Gulf: Houthi Strikes and Rising Oil Costs
Yemen's Iran-aligned Houthi rebels launched a barrage of missiles and drones at Saudi Arabia's Khamis Mushait military airbase. The attack, which reportedly targeted aircraft hangars, radar systems, runways, and ammunition depots, resulted in 13 civilian casualties. Saudi authorities issued emergency alerts across Khamis Mushait and three other southern cities following the strikes.
This renewed aggression has significantly impacted global oil markets. Brent crude futures surged by 1.18% to nearly $107 a barrel, while US West Texas Intermediate futures rose by 1.24% to $102.65 a barrel. The price hike reflects heightened concerns about regional instability and its potential to disrupt critical oil supplies, especially as planned talks with Iran regarding the Strait of Hormuz have stalled.
Geopolitical Tensions Affect Global Energy Supply
Officials from Yemen's internationally recognized government reported that Houthi forces are strengthening their positions along the country's western Red Sea coastline. Despite increased aerial bombardments by Saudi and Yemeni forces, the Houthis maintain effective control over much of this strategic area, including advances like the capture of Perim Island at the mouth of the Red Sea.
These developments have intensified pressure on Saudi oil exports. An earlier attack, blamed by Riyadh on Iranian-backed militias in Iraq, forced the East-West pipeline offline. This 1,200-km pipeline, built to bypass the Strait of Hormuz, is crucial for safeguarding Saudi oil transit. Traders warn that a prolonged shutdown could remove up to 4% of global oil supply, especially with the Strait of Hormuz facing potential blockades.
International Response and Diplomatic Standoff
The escalation comes amidst a backdrop of stalled diplomatic efforts. Gulf Arab states have postponed talks with Iran, further fueling anxieties about broader disruptions to energy flows. Washington has reportedly resisted Saudi requests for direct military intervention beyond intelligence support, though US regional commander Admiral Brad Cooper met with Saudi Crown Prince Mohammed bin Salman in Jeddah.
The conflict between the Saudi-led coalition and Houthi rebels, which began in 2015, had largely subsided under a recent ceasefire. However, fighting resumed this month, with Houthi forces pushing back against government-aligned troops. The rebels indicate their intensified missile and drone attacks are a response to heavy pressure they are experiencing on the ground.