Gulf markets faced a downturn on Thursday, driven by escalating threats from the Houthis against Saudi Arabia. The Saudi index fell 0.3%, impacted by a 3.1% drop in ACWA Power and a 0.4% decline in Saudi Aramco. Qatar’s index led regional losses, hitting a six-year low, while Dubai’s index also fell.
The Houthi movement has vowed to continue attacks on Saudi airports and oil facilities, claiming recent strikes are justified responses to Saudi military actions in Yemen. Increased Houthi assaults have resulted in significant casualties and damage, raising concerns about escalating tensions in the region amidst the ongoing US-Iran rivalry.
The Houthis, allied with Iran, accused Saudi Arabia of attacking Sanaa, escalating tensions in Yemen’s civil war. In retaliation for a strike on Riyadh, where 13 died, Saudi forces targeted a fuel depot, claiming to weaken Houthi military capabilities. The conflict intensifies, drawing in international support and condemnation.
Several prominent energy executives, including those from ExxonMobil and Shell, were removed from the agenda of the WPC Energy Congress in Riyadh amid ongoing security concerns following recent attacks linked to Yemen’s Houthis. Saudi officials acknowledged safety issues while emphasizing the event’s significance for the kingdom’s economic diversification efforts.
Oil prices continue to decline as supply disruptions in the Middle East appear to ease. Following a recent drop, Brent crude hovers near $102 a barrel, while West Texas Intermediate falls below $100. Saudi Arabia aims to restore operations along its East-West pipeline amid ongoing geopolitical tensions.
In a recent address, Yemen’s al-Ra’i reaffirmed the nation’s commitment to protecting maritime routes and international trade in the Red Sea. He criticized Saudi Arabia’s military actions and blockade, asserting that Yemen will ensure safe passage for vessels, except those linked to Saudi Arabia, framing it as a strategy of reciprocal action.
On September 14, Arab Gulf states canceled a meeting with Iran amid renewed Houthi attacks on Saudi Arabia, which included missile strikes on Khamis Mushait. This escalation, following recent territorial gains by the Houthis, raises significant concerns for global oil supplies as crude prices surged over 4%, intensifying regional tensions.
Oil prices surged over 4% to a 16-week high on Monday, driven by new strikes on Saudi energy infrastructure and attacks on vessels in the Middle East. Brent futures climbed to $109.29 per barrel, while U.S. West Texas Intermediate rose to $104.26, raising concerns about global energy supply disruptions.
Oil prices reached multi-week highs on Tuesday, driven by attacks on Saudi energy facilities and Iran’s threats of “economic warfare” against the U.S. Brent crude rose to $99.00 a barrel, while WTI climbed to $94.41. Analysts warn that geopolitical tensions and supply constraints will keep prices elevated.
On Monday, a tanker was set ablaze off Saudi Arabia’s Red Sea after being hit by an “unknown projectile,” reported the UK Maritime Trade Operations. Fortunately, all crew members are safe, and no environmental damage has occurred. This incident heightens concerns over maritime safety amid escalating tensions with Yemen’s Houthi forces.
Fighting in Yemen has intensified, with Houthis framing the conflict as resistance against Saudi forces. While the Saudis support the Internationally Recognized Government through airstrikes, the Houthis prepare for renewed conflict, targeting shipping and coastal facilities. Despite heavy casualties, they seek a stronger negotiation position amid ongoing tensions.
On July 20, Houthi forces initiated a maritime blockade on Saudi Arabia, closing the Bab al-Mandab Strait to vessels. This led the Chinese VLCC Tanker Xin Long Yang to reroute to Suez. The situation escalated with missile attacks on Saudi-flagged tankers, igniting fires and raising concerns over global oil supply disruptions.
Saudi Arabia has condemned Houthi accusations of a blockade on Yemen and threats to maritime navigation. The Saudi Ministry of Foreign Affairs emphasized its commitment to humanitarian aid, highlighting over 300 vessels delivering essential supplies to Yemeni ports. The Kingdom supports UN-led peace efforts and urges international cooperation for Yemen’s stability.
Saudi Arabia has launched the “Caribbean Maritime Transport Sustainability” project to support 14 Caribbean nations, in partnership with the International Maritime Organization (IMO). This initiative aims to enhance maritime legislation and regulatory frameworks, enabling countries to ratify key IMO instruments and develop national maritime policies over the next two years.
On April 12, 2026, Bloomberg reported Saudi Arabia has restored its East-West pipeline to full capacity of 7 million barrels per day, crucial for Red Sea oil exports. This follows a recent strike damaging pumping stations, impacting exports amid an Iran conflict ceasefire. The swift recovery illustrates Saudi Aramco’s operational resilience.
