Saudi Arabia is confronting mounting threats to its oil exports as Houthi rebels advance near a crucial Red Sea shipping route, drone attacks blamed on Iraqi militias force a major pipeline to close and Iran continues disrupting the Strait of Hormuz. The combined pressure has unsettled global markets and left the kingdom with limited options while its most important ally, the United States, remains reluctant to widen the Middle East war.
A Saudi official, who was not authorized to brief the media and spoke on condition of anonymity, said the kingdom would defend itself and work with partners, including the United States, to ensure freedom of navigation in the Red Sea. The Saudi government did not respond to a request for comment.
The crisis has disrupted Crown Prince Mohammed bin Salman’s effort to reshape Saudi Arabia into a global business hub in a more prosperous and integrated region. Those plans had already suffered major setbacks after Hamas’ Oct. 7, 2023, attack on Israel triggered successive wars. When the United States and Israel attacked Iran on Feb. 28, Iran responded with missile and drone attacks on Saudi Arabia and other Gulf states and effectively shut down the Strait of Hormuz, restricting regional oil and gas exports and jolting the world economy.
Saudi Arabia avoided some of the worst effects by moving oil across the Arabian Peninsula to the Red Sea. From there, shipments could travel to Europe through Egypt’s SUMED pipeline and the Suez Canal, or toward Asia through the Bab el-Mandeb Strait and the Indian Ocean. Renewed tensions with the Houthis in July placed that alternative under pressure after the rebels declared a blockade of Saudi shipping and resumed large-scale attacks for the first time in four years.
Michael Ratney, a former U.S. ambassador to Saudi Arabia, described the developments as “incredibly frustrating” for the kingdom. He said Saudi leaders had not sought the war and had approached it with deep concern, only to see their worst-case scenarios begin to materialize. For Iran, the Houthi advance and the pipeline closure increase global economic pressure as its grip over the Strait of Hormuz has loosened.