Yemen’s Houthi rebels on Monday claimed responsibility for attacks on several Saudi oil facilities. The Iran-backed group said the strikes were carried out in retaliation for Saudi drone incursions into Yemeni airspace, Reuters reported.
Oil prices fall as markets welcome pause
Houthi military spokesperson Yahya Saree said the group targeted crude oil supply and transport sites linking eastern Saudi Arabia to the Red Sea export hub of Yanbu. The group also claimed to have used drones to target Saudi oil facilities, though it did not specify when the attacks took place.
The attack came days after the Houthis threatened to target Saudi oil facilities and shipping in the Red Sea. Saudi Arabia has responded with airstrikes on Houthi positions in Yemen and said it was acting to protect shipping and key infrastructure.
READ ALSO | Saudi strikes Houthi sites in Yemen as conflict flares
Saudi Arabia has increasingly relied on its east-west pipeline to move crude oil to Yanbu on the Red Sea, bypassing the Strait of Hormuz after repeated attacks on shipping linked to the ongoing US war on Iran.
The Houthi attack comes even as the US and Iran have paused direct attacks for a third straight day. Regional officials said Qatar, Pakistan and Oman are leading efforts to bring Washington and Tehran back to talks after an interim ceasefire collapsed following weeks of bombardment, AP reported.
US Ambassador to the United Nations Mike Waltz said President Donald Trump was giving diplomacy “some space” after nearly two weeks of escalating strikes, as per AP.
Iran also confirmed it paused attacks following the US decision to halt strikes. Tehran’s foreign ministry spokesperson Esmail Baghaei said mediators continue to pass messages between both sides, although there were no direct negotiations.
ALSO READ | Houthis fire on two Saudi oil sites in Red Sea; no fresh US strikes for first time in two weeks
The pause in fighting helped ease pressure on global markets.
Brent crude fell nearly 6% to below $91 a barrel after rising sharply last week. Global stock markets gained while US Treasury yields declined as investors welcomed signs of a diplomatic opening, as per Bloomberg.
Future Forecast
Iran and Oman have also held discussions on managing navigation through the Strait of Hormuz, a key global oil shipping route that remains effectively closed. Tehran says any future arrangement must protect Iran’s sovereignty and security interests.
Tensions remain high across the region even after stalled fighting. Jordan said it intercepted two drones, while separate attacks targeted an Iranian Kurdish dissident group in Iraq, as per Reuters.
Commercial shipping through the Strait of Hormuz has fallen to its lowest level in three weeks. The US military said its naval blockade of Iran remains in place, with several commercial vessels redirected, disabled or boarded in recent days.
The Houthis have also threatened ships operating near the Bab al-Mandeb Strait and recently attacked at least one Saudi tanker, raising concerns over another critical maritime trade route.
ALSO READ | Geopolitical implications of the Houthi threat
