Oil Nears $96 as Houthi Strikes Threaten Red Sea Routes

Saudi Arabia reported that Houthi forces in Yemen launched a ballistic missile toward Riyadh on Saturday, marking the first such attempt on the capital since fighting intensified in the broader regional conflict. The Saudi-led coalition intercepted the missile, with no casualties or damage confirmed at the site. Residents reported hearing an explosion and later observed smoke near the airport area.

The coalition also stated that the Houthis targeted infrastructure in the Red Sea port of Yanbu, which serves as the endpoint for a major Saudi oil pipeline, along with sites in Taif, Baysh, and Farasan. All attempts were reportedly thwarted. Houthi spokesmen claimed strikes on sensitive Riyadh locations and Aramco facilities in Yanbu, asserting that fires resulted, though they provided no supporting evidence and Saudi authorities found no such outcomes.

This latest round of attacks occurs as the Iran-backed Houthis expand operations beyond traditional Yemeni battlegrounds. The group has previously disrupted Red Sea shipping lanes, forcing some Gulf oil exports to seek alternative paths. Saudi Arabia has relied on Red Sea routes to maintain export volumes despite tensions elsewhere, helping moderate global price spikes. Disruptions at Yanbu could limit that flexibility and add pressure to markets already sensitive to supply risks.

Iranian support for the Houthis has been consistent, supplying weapons and training that enable longer-range strikes. The current escalation ties into wider proxy confrontations involving Tehran, including efforts to influence shipping through the Strait of Hormuz. Past patterns show that external backing allows such groups to sustain campaigns even when direct military gains remain limited.

Oil market responses have been measured so far, reflecting available spare capacity from other producers. However, sustained threats to multiple chokepoints raise the prospect of higher costs for transport and insurance. Aramco issued no immediate comment on the claims involving its Yanbu operations.

Coalition statements emphasized that defenses held against the coordinated attempts. Houthi actions continue to demonstrate how external funding and arms flows can prolong conflicts with direct effects on energy infrastructure far from the initial theater.