Iran-Backed Houthis Put Saudi Oil Lifelines in Crosshairs as Global Supply Fears Surge
Iran-backed Houthi forces are increasingly positioned to threaten some of Saudi Arabia’s most critical energy infrastructure, including its 745-mile East-West Pipeline and the Abqaiq oil processing complex, as the rebels’ rapid gains along Yemen’s Red Sea coast deepen concerns about global oil supplies. The latest escalation comes after an attack forced the kingdom to shut down the East-West Pipeline, a route that has become increasingly important amid severe disruptions in the Strait of Hormuz.
The Houthis’ rapid territorial advance has given the group control of key positions around the Bab al-Mandeb Strait, including Perim Island and territory along Yemen’s Red Sea coast. Those gains have placed the Houthis in a substantially stronger position to threaten vessels passing through one of the world’s most important shipping chokepoints.
Security analysts say the danger extends beyond shipping. Saudi Arabia’s East-West Pipeline, the Abqaiq processing facility, and other major pieces of fixed energy infrastructure could face attacks from Iran-aligned forces. The pipeline was recently struck by drones launched from Iraq, according to Saudi authorities, forcing its shutdown while damage was assessed and repairs undertaken.
“There is an inherent problem in trying to defend large, fixed infrastructure from the Houthi attacks,” said Kelly Campa, the head of the Middle East team for the Institute for the Study of War.
“Attacks on the pipeline are very concerning… and its clear that this is an Axis of Resistance effort to go after Saudi oil and impose more economic pains.”
President Donald Trump, meanwhile, has signaled reluctance to deepen direct American military involvement, suggesting that the confrontation involving the Houthis and Saudi Arabia could ultimately be resolved. The United States has continued providing assistance to the kingdom, including intelligence support, while Washington has also been in direct contact with the Houthis.
The Houthis emerged as a dominant force in Yemen after seizing the capital, Sanaa, in 2014, setting off years of warfare against Yemen’s internationally recognized government, which has been supported by Saudi Arabia.
A ceasefire beginning in 2022 significantly reduced hostilities for several years, but the conflict erupted again this summer after Saudi-linked forces bombed a runway near Sanaa to prevent an Iranian aircraft from landing.
The aircraft was subsequently reported to have been carrying Iranian military equipment and advisers intended to assist the Houthis.
That episode was followed by renewed Houthi attacks against Yemen’s internationally recognized government and Saudi Arabia. The Houthis also declared a maritime blockade targeting Saudi vessels in the Red Sea.
Iran and the Houthis had repeatedly threatened action involving the Bab al-Mandeb Strait amid continued U.S. strikes against Iran. The Houthis then poured thousands of fighters into the area around the strategic port city of Mokha, part of an offensive that dramatically expanded their position along Yemen’s Red Sea coastline.
The Houthis’ advance has potentially major consequences for international energy supplies because Saudi Arabia has increasingly depended upon Red Sea export routes as traffic through the Strait of Hormuz has been severely disrupted by the wider regional conflict. The Bab al-Mandeb is one of the principal maritime links between the Red Sea and the Gulf of Aden.
A prolonged disruption of the Bab al-Mandeb would leave commercial vessels with significantly fewer viable options and could force many ships onto much longer routes around Africa, adding considerable time and expense to voyages between Europe and Asia.
The impact is already being seen in Saudi crude exports. Shipments through the kingdom’s principal Red Sea outlet have become increasingly important since the regional war began, while the recent pipeline attack has heightened fears over Saudi Arabia’s ability to maintain those exports.
Complicating any effort to protect shipping is the geography of the Bab al-Mandeb. The waterway is narrower than the Strait of Hormuz, and the Institute for the Study of War has said that its dimensions leave little prospect for creating the type of protected alternative transit route that the United States has helped facilitate off Oman.
The threat is also coming from land. Saudi energy installations have come under attack, including the East-West Pipeline, which Saudi Arabia said was hit by several drones launched from Iraqi territory.
“It does send a message that goes beyond the Strait of Hormuz… that the Axis of Resistance can threaten energy markets in the region beyond the strait,” Campa said.
The East-West Pipeline is especially important because it stretches roughly 745 miles across Saudi Arabia, connecting oil-producing areas near the Persian Gulf with the Red Sea port of Yanbu. That gives Riyadh a route for moving crude that does not depend on passage through the Strait of Hormuz.
Since the war began, Saudi Arabia has used the pipeline to transport roughly 4 million to 5 million barrels per day, equivalent to approximately 4% to 5% of global oil supply. The pipeline’s role has consequently become even more critical as normal Gulf shipping routes have faced escalating disruption.
The Institute for the Study of War has warned that defending such an enormous piece of infrastructure poses a particular challenge, “given that damage to a single segment along the pipeline would render the entire pipeline inoperable.”
The latest strike caused extensive damage and forced the pipeline offline. Industry estimates of the repair timeline have varied, although U.S. Energy Secretary Chris Wright said Tuesday that Washington expects the pipeline to resume operations within days. Before that assessment, industry sources had warned that export stocks available at Yanbu could cover only a limited period if the pipeline remained shut.
Another major concern is Abqaiq, the enormous Saudi facility that processes crude oil by removing gases and impurities so the oil can be safely transported and stored. The complex is considered the world’s largest crude oil processing facility and handles a significant share of global supply.
Thomas Warrick, who served as deputy assistant secretary for counterterrorism policy at the Department of Homeland Security during Trump’s first term, previously described Abqaiq as the “Panama Canal” of global energy markets while discussing the facility’s importance following the 2019 attack against it.
Abqaiq is linked to the East-West Pipeline system that Saudi Arabia has relied upon to move crude away from the disrupted Strait of Hormuz. Any serious interruption there would therefore threaten another crucial component of the kingdom’s ability to keep oil flowing to international markets.
The growing threat to Saudi infrastructure has already rattled energy markets. Brent crude climbed above $108 a barrel following the pipeline attack, as traders weighed the possibility of prolonged Saudi export disruptions and further attacks on regional energy facilities.
The United States previously conducted a 53-day military campaign against Houthi targets before the operation ended under a ceasefire reached with the group.
Trump has appeared reluctant to commit additional American forces directly to the latest fighting, even as Saudi Crown Prince Mohammed bin Salman has sought greater U.S. assistance. Washington is providing intelligence support, but U.S. officials have not announced direct American strikes in response to the latest attacks.
Reports indicate that Trump told the Saudi crown prince that Washington would provide substantial assistance while stopping short of launching offensive military action.
Trump also said over the weekend that the Houthis had contacted the United States and urged Washington not to intervene, while expressing confidence that the confrontation could be resolved. Reuters reported Tuesday that Trump confirmed recent communication involving the Houthis and the Saudi crisis.
“I can just say, it’s going to work out fine and dandy. It’s going to be very good,” Trump said of the talks.
