Sunday, 20 September 2026

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Saudi Arabia Faces Crisis from Houthi Attacks and Iranian Pressure

Saudi Arabia faces a crisis from Houthi attacks and Iranian pressure, affecting its crude oil exports.

Álvaro Sáez Ferrer
Álvaro Sáez Ferrer
· 2 min read

Crown Prince Mohammed bin Salman seeks support from the U.S. amid the growing threat from Houthi rebels in Yemen. The attacks have severely impacted Saudi crude exports, already at their lowest level in 36 years.

The situation in Saudi Arabia has become critical due to simultaneous attacks from Houthi rebels, backed by Iran, and Shia militias in Iraq. In light of this growing threat, Crown Prince Mohammed bin Salman contacted U.S. President Donald Trump for support, according to expansion.com.

The Houthis have advanced towards the Bab el-Mandeb Strait, a strategic point for Saudi oil exports, which are already at their lowest level in 36 years, reaching only 6.2 million barrels per day in August. This decline is due to navigational difficulties in the Strait of Hormuz and the aforementioned Bab el-Mandeb, where Iranian attacks have increased.

Energy facilities in southern Saudi Arabia have been targeted by missiles and drones, forcing the closure of a vital pipeline. Despite warnings, Trump appears unwilling to intervene militarily, causing frustration in Riyadh. Analysts suggest this represents the greatest leadership test for Crown Prince Mohammed since the assassination of journalist Jamal Khashoggi in 2018.

The closure of the East-West pipeline, which has a capacity of up to 7 million barrels per day, has led experts to foresee an imminent reduction in production at the Yanbu and Petro Rabigh refineries. Reserves at these facilities could run out in a few days, further complicating the kingdom's economic situation.

Saudi Arabia finds itself caught between the pressure from the Houthis and the threat of attacks from Iraq, where Iran-backed militias operate. The dilemma facing Riyadh is whether to escalate the conflict or seek a new truce, which could cost it half of Saudi Aramco's production.

Álvaro Sáez Ferrer

Written by

Álvaro Sáez Ferrer

Redactor

Economista por ICADE y una de las pocas personas que disfruta leyendo la ley de presupuestos. Cafetero, padre a tiempo completo y azote de la letra pequeña; en Iber Empresa escribe de economía y fiscalidad.