Houthis claim attacks on Saudi oil facilities, raising global supply concerns

By Diden Abigail Owuntarose

Yemen’s Houthi group on Monday claimed responsibility for attacks on Saudi Arabia’s East-West crude oil pipeline pumping stations and King Khalid International Airport in Riyadh, raising fresh concerns over global energy supplies amid escalating tensions in the Middle East.

The Iran-aligned group announced the attacks on October 26, although Saudi authorities had not immediately confirmed whether the reported targets were hit.

The Saudi-led military coalition said it had intercepted a missile fired towards Riyadh and destroyed two ballistic missile launchers in Yemen’s capital, Sanaa.

The coalition also reported strikes against Houthi military infrastructure, including missile-storage facilities and launchers, as fighting between the two sides intensified.

The reported attacks have heightened concerns about the security of Saudi Arabia’s oil infrastructure, particularly the East-West pipeline, which transports crude oil from the kingdom’s eastern production areas to the Red Sea port of Yanbu.

The pipeline provides Saudi Arabia with an alternative export route that reduces its dependence on shipments through the Strait of Hormuz, a strategically important waterway affected by the wider regional conflict.

The latest escalation comes as disruptions to commercial shipping through the Strait of Hormuz and the Bab el-Mandeb Strait continue to unsettle energy markets.

Oil prices had risen sharply in the previous week amid concerns about potential supply disruptions. However, prices fell on Monday as diplomatic efforts to ease tensions between the United States and Iran raised hopes of de-escalation.

Brent crude futures declined by about 1.3 per cent to $115.23 per barrel, while US West Texas Intermediate crude fell by approximately 1.7 per cent to $101.51 per barrel in early trading.

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Despite the decline, market analysts warned that the reprieve could be temporary if attacks on energy infrastructure or disruptions to shipping routes continued.

The developments could have implications for oil-importing countries, including Nigeria, where international crude prices, exchange-rate movements and domestic refining and distribution costs influence the wider energy market.

For Nigeria, higher global oil prices could increase export earnings when production and export volumes remain strong. However, price increases can also place pressure on fuel costs, transportation and inflation, depending on domestic market conditions.

The Houthis have intensified attacks on Saudi targets as the conflict in Yemen becomes increasingly connected to wider regional hostilities involving Iran and its adversaries.

The group has previously threatened airports, ports and oil installations, while Saudi Arabia has stepped up military operations against Houthi positions.

Diplomatic efforts to reduce tensions were also under way, with Qatari mediators travelling to Tehran and officials from Saudi Arabia, Turkey and Pakistan expected to engage Iranian representatives.

The latest claims have underscored the vulnerability of key energy infrastructure to regional conflict, although the extent of any damage from Monday’s reported attacks remained unclear.

Energy markets are expected to remain sensitive to further developments, particularly any confirmed disruption to Saudi oil production, pipeline operations or international shipping routes.