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Source: Newsmaker.id
The Iran-aligned Houthi group launched another attack on Saudi Arabia on Monday, as Gulf states postponed planned talks with Iran. This situation has raised concerns that the Middle East conflict could escalate and threaten global oil supplies.
The Houthis said they fired dozens of missiles and drones at a military airbase in Khamis Mushait, southern Saudi Arabia. The attacks targeted aircraft hangars, radar systems, runways, and ammunition depots in retaliation for Saudi airstrikes in Yemen.
Saudi authorities issued an emergency alert in Khamis Mushait and three other southern cities. This attack follows an incident last Friday that damaged the Saudi East-West oil pipeline, a vital route allowing Gulf oil exports to bypass the blockaded Strait of Hormuz.
Pressure on global oil supplies has increased after the Houthis advanced rapidly in Yemen in recent days and seized several strategic areas, including Perim Island at the mouth of the Red Sea. This development has increased the risk to the Bab el-Mandeb oil pipeline, adding to the already high tensions in Hormuz.
Diplomatic efforts have also suffered setbacks. Oman was previously scheduled to host a meeting between Iran and Gulf states to discuss negotiations to reopen the Strait of Hormuz, but the meeting was postponed. Iran postponed the meeting at Saudi Arabia's request.
US President Donald Trump reiterated that Iran wants to reach a deal soon. However, the Secretary of Iran's Supreme National Security Council, Mohsen Rezaei, rejected this narrative and asserted that there will be no talks until Iran's conditions are met.
Oil prices rose more than 4% on Monday before closing about 1% higher. Market participants believe a prolonged Saudi pipeline shutdown could disrupt up to 4% of global oil supply, while Riyadh has not yet explained when the pipeline will resume normal operations.
Uncertainty also arose from reports of damage to the Panama-flagged tanker El Gaia. Iran said the vessel struck a sea mine while passing through a restricted zone south of the Strait of Hormuz, while US Central Command denied the report and said the vessel had previously been hit by an Iranian missile.
Newsmaker Analysis: Houthi attacks on Saudi Arabia and the delay in Gulf-Iran talks indicate Middle East geopolitical risks have not subsided. The market now faces a dual threat from the Strait of Hormuz and Bab el-Mandeb, two vital waterways for global energy trade. If the Saudi East-West pipeline remains closed and attacks on ships continue, oil prices could potentially maintain a high risk premium. This could also heighten concerns about energy inflation and keep global central banks cautious in setting interest rates. (asd)