Analyst: If the Houthi attacks escalate, it could ultimately force Saudi Arabia to cut production along with other oil-producing countries.

According to a report from the Wall Street Journal by Joe Wallace, energy analysts warn that if the Houthi rebels in Yemen resume attacks on shipping in the Red Sea, the oil market could face even more severe turmoil. Renewed attacks could cut a significant amount of oil from global supplies and drive up prices. Saudi Arabia has been moving as much crude oil as possible from the Persian Gulf to its Red Sea port at Yanbu, with shipments primarily going to Asia. While this has not fully offset the amount of oil unable to pass through the Strait of Hormuz, it has helped limit the rise in global oil prices. Analysts indicate that if Houthi attacks make it too dangerous for tankers to approach Yanbu, up to millions of barrels of crude oil could be stranded daily in the Middle East. At that point, Saudi Arabia may be forced to cut production alongside Kuwait and Iraq. Previously, reports indicated that the probability of “Israel striking Yemen before March 31, 2026” on Polymarket has risen significantly.