Saudi Arabia Reroutes Oil Exports Amid Houthi Attacks

Saudi Arabia has implemented a new method for oil transportation, transferring crude oil between ships off the coast of Sohar, Oman, to refineries in Asia. This move comes as a response to escalating Houthi control over the Bab el-Mandeb strait and attacks on the "East-West" oil pipeline, which bypasses the Strait of Hormuz. The new strategy has already contributed to a drop in global oil prices.

Brent crude futures fell by 2.7% to $105.83 per barrel, and U.S. WTI futures dropped by 3.1% to $102.51. This decline was also influenced by a smaller-than-expected decrease in U.S. crude oil inventories. However, oil prices in China reached an all-time high of $129 per barrel due to the Middle East tensions.

Earlier, oil prices had risen after reports of suspended crude oil loadings at Saudi Arabia's Yanbu port on the Red Sea and canceled shipments to Europe. These disruptions followed attacks on the "East-West" pipeline. While pro-Iranian militias in Iraq deny involvement, U.S. President Donald Trump has directly blamed Iran.

Meanwhile, Saudi Arabia's interceptor missile stocks are reportedly dwindling, prompting Riyadh to seek air defense assistance from allies including France, the UK, Pakistan, and Egypt. The U.S., Saudi Arabia's primary supplier, has seen its inventory depleted, leading to appeals for help from other nations.

The Houthi takeover of the strategic Red Sea coastline, granting them control over the Bab el-Mandeb strait, continues to raise global concerns. U.S. officials met with Houthi representatives in Oman, where the rebels reportedly pledged to avoid attacking American vessels in the strait and affirmed their commitment to a 2025 ceasefire. A Yemeni source also stated the Houthis would not target Israeli or other commercial ships, except those belonging to Saudi Arabia.

Saudi Arabia reported intercepting a drone targeting Mecca, Islam's holiest city, describing the act as a "red line." The Houthis denied launching the drone, their last alleged attempt to attack the city was with a ballistic missile in 2017. The Houthis also claimed to have downed a Saudi-led coalition F-15 fighter jet and a reconnaissance drone over Marib province, though evidence for the fighter jet claim was not provided.

Experts note the Houthis' rapid development of advanced weaponry, with one analyst stating they achieved in five years what took Hezbollah twenty. The Houthis, who seized Yemen's capital Sanaa in 2014, have been in conflict with a Saudi-led coalition for over a decade, resulting in over 100,000 deaths. The recent escalation includes a Houthi blockade on Saudi shipping in the Red Sea.