Gulf diplomacy falters as Houthi attacks threaten Saudi oil exports

DUBAI | Efforts to ease tensions around the Strait of Hormuz suffered a setback Monday after a planned meeting between Iran and Gulf Arab states was postponed, while Yemen’s Iran-aligned Houthi forces launched a new attack on Saudi Arabia and a major Saudi oil pipeline remained shut after being damaged in strikes.

The developments added to growing pressure on global energy supplies as the conflict continued to affect major oil and shipping routes. Oil prices climbed more than 3% when markets reopened on Monday, with Brent crude trading above $107 a barrel, as traders assessed the potential impact of disruptions to Saudi oil exports and shipping through the Persian Gulf and Red Sea, according to Reuters.

The Houthis said they launched dozens of missiles and drones toward the Khamis Mushait airbase in southwestern Saudi Arabia, targeting aircraft hangars, radar systems, runways and ammunition depots. Saudi authorities issued emergency alerts in Khamis Mushait and three other southern cities that have previously faced Houthi attacks, Reuters reported.

The latest attack followed an intensification of fighting in Yemen, where the Houthis have advanced along parts of the Red Sea coast and captured Perim Island, a strategically located island at the entrance to the Bab el-Mandeb Strait. The waterway connects the Red Sea with the Gulf of Aden and is one of the world’s major maritime routes.

The escalation is particularly significant for Saudi Arabia because its ability to move crude oil through alternative routes has become increasingly important as shipping through the Strait of Hormuz has been severely disrupted.

Saudi Arabia’s East-West pipeline was shut after drone attacks damaged sections of the system on Friday. The pipeline crosses the Arabian Peninsula and carries Saudi crude from fields in the east to the Red Sea port of Yanbu, allowing oil to reach international markets without passing through Hormuz.

Reuters reported that the pipeline had been carrying about 4 million barrels of oil per day to Yanbu, equivalent to roughly 4% of global oil supply. Industry sources gave differing estimates for repairs, with one source saying the damage could take five to six weeks to repair, while another said partial operations could resume sooner as work continues.

Saudi authorities have not announced a definitive timetable for the pipeline’s full restoration.

The disruption has also raised concerns among Asian refiners that depend heavily on Saudi crude. Reuters reported Monday that some buyers had been warned of delays in Saudi oil loadings, while others were still waiting for updated shipment schedules from Saudi Aramco.

The pipeline outage came as diplomatic efforts to establish arrangements for shipping through Hormuz also faltered. Oman had been scheduled to host talks Monday involving Iran and Gulf Arab states, but Omani Foreign Minister Sayyid Badr Albusaidi said the meeting had been postponed in the interest of reaching consensus.

Iran said Saudi Arabia had requested the postponement. No new date was immediately announced.

Iran has also issued a list of 77 ships it said had violated its protocols for operating in the Strait of Hormuz. Tehran warned that vessels on the list could face restrictions, including fines, detention or confiscation, according to Reuters.

The United States is closely watching the developments as Saudi Arabia faces growing threats to its territory and energy infrastructure. Saudi Crown Prince Mohammed bin Salman met U.S. Central Command chief Admiral Brad Cooper in Jeddah on Monday to discuss regional developments, Saudi state media reported.

The meeting followed reports that the crown prince had sought greater U.S. military assistance against the Houthis. Reuters reported that U.S. President Donald Trump had not agreed to direct American strikes against the group, although Washington offered intelligence-sharing and targeting assistance to Riyadh.

The Strait of Hormuz has long been regarded as one of the world’s most important energy chokepoints. Located between Iran and Oman, it links the Persian Gulf with the Gulf of Oman and the Arabian Sea.

The U.S. Energy Information Administration estimates that about 20.9 million barrels per day of oil and petroleum liquids passed through Hormuz during the first half of 2025, representing roughly one-fifth of global petroleum consumption and about one-quarter of global maritime oil trade.

The strategic importance of the waterway became especially clear during the Iran-Iraq War in the 1980s, when attacks on commercial tankers in the Persian Gulf became known as the Tanker War. The attacks demonstrated how conflict in the region could threaten international energy supplies far beyond the Middle East.

Saudi Arabia later expanded alternative export infrastructure, including its East-West pipeline, to reduce its dependence on Hormuz. The system became an important strategic route because it allows Saudi crude to reach the Red Sea without transiting the strait.

The current crisis has exposed the vulnerability of those alternatives as well. With shipping through Hormuz disrupted and the East-West pipeline damaged, Saudi Arabia faces increasing pressure on its ability to maintain exports through routes outside the Persian Gulf.

Reuters reported that Saudi oil production had already fallen to about 6.2 million barrels per day in August from 10.9 million barrels per day in February, before the latest pipeline disruption.

The combination of restricted Hormuz traffic, growing Houthi activity around the Red Sea and Bab el-Mandeb, and damage to Saudi Arabia’s alternative oil-export infrastructure has intensified concerns over the stability of global energy supplies.

For now, the postponement of the Iran-Gulf meeting leaves diplomacy without a clear timetable, while the duration of the Saudi pipeline outage and the continued expansion of the conflict remain key factors for oil markets and international shipping.