Saudi Arabia Faces Worst Crisis Amid Houthi Attacks as U.S. Refuses Support

Saudi Arabia faces its worst crisis as Houthis block critical export routes, threatening the kingdom's economy and energy markets. The Houthi rebels have seized two more islands near the Bab al-Mandab Strait, further closing off a vital shipping lane that bypasses the Hormuz Strait. This follows earlier captures of Ferim Island and Mocha port.

The shutdown of the East-West Pipeline—a key route for transporting up to 7 million barrels per day without passing through Hormuz—has raised concerns about oil supply shortages, with analysts warning a one-month disruption could reduce global supply by 120 million barrels. Saudi Aramco's production capacity, which accounts for half of the kingdom's output, is at risk.

Abu Dhabi Commercial Bank forecasts Saudi Arabia's economy will contract by 3.1% this year, with a potential drop to -4.5% if pipeline operations remain halted for a month—a level more severe than the 2020 pandemic downturn. Bloomberg notes that foreign investment in sectors like data centers, energy, and electric vehicles could also be affected.

Global oil prices have risen sharply, with November Brent crude closing at $108.75 per barrel (up 2.9%)—the highest since May 19—and U.S. West Texas Intermediate (WTI) rising 4.38% to $105.83.

Saudi Arabia's options are limited. The kingdom has sought military support from the U.S. and UK, but both declined. The U.S., preoccupied with Iran-related conflicts ahead of November elections, shows little interest in further Middle East involvement. Analysts suggest Israel or Egypt might offer assistance due to regional security concerns, though this remains uncertain.