Houthi Threat Grows as Saudi Pipeline Shutdown Hits Oil

The ongoing US-Iran war has led to a significant escalation in Houthi attacks on Saudi Arabia over the past few weeks, impacting the kingdom's economic stability. While Saudi Arabia initially avoided the worst of the early conflict between Iran and the US, the Houthis have been staging near-daily attacks, posing a direct threat to the nation.

Adding to Saudi Arabia's challenges, another Iran-backed group operating out of Iraq launched attacks that resulted in the closure of a key oil pipeline. This closure, coupled with the Houthi conflict, jeopardizes the kingdom's ambitious economic diversification plans, which were laid out approximately a decade ago.

The closure of the East-West Pipeline is a critical development, as it had been increasingly used to bypass the Strait of Hormuz, where the US-Iran war previously caused disruptions. The attacks have put Saudi Arabia and Crown Prince Mohammed bin Salman in a crisis, highlighting the vulnerability of their oil infrastructure and the broader geopolitical risks in the region. Repairs to the damaged pipeline could take several weeks, further exacerbating the economic strain on Saudi Arabia.