Middle East oil supply risks grow as Houthis target Saudi pumping stations

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Middle East oil supply risks grow

Highlights

Houthis claim attacks on Saudi oil infrastructure.
Iran tensions threaten major oil shipping routes.
Brent and WTI fall despite escalating conflict.

The Houthis said they targeted pumping stations along Saudi Arabia's East-West crude pipeline and King Khalid International Airport, although Saudi authorities had not confirmed the strikes. Saudi-led forces separately reported intercepting a missile aimed at Riyadh and destroying launch facilities in Yemen, Reuters reports.

Saudi oil infrastructure faces renewed threats

Saudi Arabia's East-West pipeline has become increasingly important since the war severely restricted shipping through the Strait of Hormuz. The 1,200-kilometer route carries crude toward the Red Sea, offering exporters an alternative to the Persian Gulf's principal maritime passage.

The Houthis previously claimed attacks on the pipeline, pumping stations, an Aramco facility in Yanbu, and the Rabigh refinery. Saudi Arabia has not confirmed those claims. Meanwhile, Saudi-led forces reported destroying missile storage tunnels, launchers, and military supply infrastructure in Yemen as fighting intensified near the strategically important Bab el-Mandeb shipping corridor.

Iran diplomacy faces growing military pressure

Saudi Arabia, Turkey, and Pakistan are preparing high-level discussions with Iranian officials in Tehran on Monday. The planned meeting comes as attacks on Saudi territory strain regional relations and raise the risk of a wider confrontation involving countries seeking to limit the war's economic damage.

President Donald Trump has also signaled that renewed U.S. strikes against Iran remain possible, with additional American military forces moving toward the Persian Gulf. Iranian attacks on commercial shipping near Hormuz have increased concerns about maritime security, while Washington has reduced some diplomatic and military staffing across the region. The prospect of further escalation after the U.S. midterm elections adds uncertainty to efforts to negotiate a settlement.

Oil prices retreat despite supply disruption risks

Oil prices fell sharply Monday despite the latest threats to Saudi infrastructure. Brent crude declined 1.44%, to $110.05 a barrel, while West Texas Intermediate dropped 2.09%, to $101.29, according to the latest market quotes provided. The decline indicates that traders were reassessing the immediate supply outlook even as attacks threatened key transport routes.

The divergence between falling prices and escalating military tensions highlights uncertainty over how much crude could ultimately be disrupted. Saudi Arabia's alternative export infrastructure remains strategically important, particularly while shipping through Hormuz is constrained. Any confirmed damage to pumping stations or further threats to Red Sea shipping could change market expectations quickly. For now, oil traders face competing pressures from the possibility of diplomatic progress and the risk that renewed fighting will restrict energy supplies further.

We also reported U.S. orders diplomats to leave Saudi Arabia as tensions with Iran escalate.

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