Houthis launch fresh attacks on Saudi Arabia as Gulf‑Iran talks over Strait of Hormuz stall
Yemen’s Houthis intensified missile and drone strikes on Saudi targets, while Gulf states postponed Iran talks, raising concerns over oil supply disruptions and regional risk.
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Oil & Gas sector faces supply‑risk pressure; avoid buying related stocks.
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Open on Business Recorder## Escalation of Hostilities
Yemen’s Houthi movement carried out a new wave of attacks on Saudi Arabia, firing dozens of missiles and drones at a military airbase in Khamis Mushait and striking aircraft hangars, radar installations, runways and ammunition depots. The Saudi‑led coalition reported emergency alerts in four southern Saudi cities and confirmed that 13 civilians were wounded.
## Strategic Advances Along the Red Sea
Houthi forces have advanced along Yemen’s western Red Sea coast, seizing Perim Island at the mouth of the strait and maintaining control over most of the coastline. The advances have heightened pressure on Saudi oil exports after a recent aerial attack knocked out a key east‑west pipeline that bypasses the Strait of Hormuz.
## Impact on Global Oil Supply
Traders warned that a prolonged shutdown of the Saudi pipeline could remove up to 4% of global oil supply, especially if the Strait of Hormuz remains partially blocked. Crude prices jumped more than 4% on the news before settling about 1% higher.
## Stalled Diplomatic Efforts
Gulf Arab states postponed a planned meeting in Oman with Iran to discuss reopening the Strait of Hormuz. Iran said the delay was at Saudi Arabia’s request, while Iranian officials insisted talks would not resume until Tehran’s conditions were met. The postponement adds uncertainty to shipping routes that historically carried around 20% of world oil exports.
## Regional and International Reactions
Saudi Crown Prince Mohammed bin Salman met U.S. Central Command’s Admiral Brad Cooper in Jeddah, while the United States has so far limited its involvement to intelligence support. Conflicting reports also emerged about a Panamanian‑flagged tanker, El Gaia, allegedly hit by sea mines or an Iranian missile, underscoring the volatile security environment in the Gulf.
## Outlook for Pakistani Markets
The heightened risk to oil flows and the stalled Gulf‑Iran dialogue are likely to keep oil prices volatile, affecting Pakistan’s import bill and the earnings outlook of domestic oil‑and‑gas companies. Investors should monitor developments closely.