Iran-backed Houthi militants claim new attacks on Saudi Arabia - AP

Investing.com - Iran-aligned Houthi militants in Yemen said they have attacked military facilities and airports in Saudi Arabia, possibly pulling the kingdom into a new front of a burgeoning Middle East conflict that has jolted global energy markets.

In a social media post, the Houthis' military spokesperson said the group had launched ballistic missiles and drones against the King Khalid International Airport in the Saudi capital of Riyadh. However, no evidence for this claim was provided, the Associated Press reported.

The Houthis also said they targeted Abha airport in Saudi Arabia, as well as an air base in city of Khamis Mushait and two military bases near the border with Yemen, the AP reported.

Meanwhile, a spokesperson for Saudi-led coalition forces said they had intercepted a ballistic missile north of Riyadh.

The reported developments suggest deepening Saudi involvement in fighting in Yemen. In recent days, the Saudi-led government forces have staged an offensive aimed at degrading Houthi strike capabilities and retaking key territory, including areas near the Bab el-Mandeb Strait, a critical chokepoint Saudi Arabia relies on as an alternative shipping route for its all-important oil production activities.

Gains by the Houthis had given the rebels leverage over the Bab el-Mandeb, threatening to curtail Saudi oil exports that have already been constrained by Iran's effective closure of the nearby Strait of Hormuz. Roughly 12% of global trade traverses the Bab el-Mandeb, while about a fifth of the world's oil and liquefied natural gas flowed through Hormuz prior to the start of a joint U.S.-Israeli assault on Iran in late February.

Hopes for a diplomatic breakthrough to end the war between the U.S. and Iran remain muted, with both sides mired in a stalemate. Although recent shipping data has suggested that crude flows out of the Gulf are improving, analysts have flagged that the high costs of ferrying these shipments and an ongoing shortage in refined products will likely keep energy prices elevated.

Oil-induced inflation has become a major focus for markets, especially as high price gains force central banks such as the Federal Reserve to contemplate rolling out a series of interest rate hikes. Minutes are due out later today from the Fed's policy gathering in September, when policymakers lifted borrowing costs for the first time since 2023.

Affordability concerns have also become a central issue for voters ahead of November's U.S. midterm elections.

Speaking to Reuters, U.S. Vice President JD Vance said that Iran must make a "meaningful" reduction to its nuclear enrichment capacity in order to meet U.S. demands and finish the war.

Original Article

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