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How the Houthis' attacks on Saudi Arabia dramatically increase oil supply risk

New York Post • September 15, 2026 • business

Key Points:

The Iran-backed Houthi rebels have gained control of the Bab al-Mandeb Strait and are threatening Saudi Arabia’s 745-mile East-West pipeline and the Abqaiq oil processing plant, raising concerns over global oil supply disruptions.
The Houthis’ attacks have already reduced Saudi crude exports through the Red Sea from 4.6 million to 2.5 million barrels per day, forcing potential rerouting of shipments via the longer Suez Canal route.
The East-West pipeline is critical for Saudi Arabia to transport crude between the Persian Gulf and Red Sea, and damage to any segment could halt the entire operation, exacerbating supply risks.
The Abqaiq facility, the world’s largest crude oil processing plant, stabilizes about 7% of global crude supply, and its disruption would significantly impact global oil prices, as seen with Brent crude prices rising above $109 per barrel.
The US has deployed military advisers and engaged in talks with the Houthis but has refrained from direct attacks, with President Trump expressing optimism that the conflict will be resolved without further US intervention.

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