Analysts: If Houthi Attacks Escalate, Saudi Arabia May Ultimately Be Forced to Cut Production Alongside Other Oil Producers

Odaily According to Joe Wallace, a reporter from The Wall Street Journal, energy analysts have warned that the oil market could face more severe turmoil if Yemen's Houthi rebels resume attacks on shipping in the Red Sea. Renewed attacks could remove significant amounts of oil from global supply and push up oil prices. Saudi Arabia has been diverting as much crude oil as possible from the Persian Gulf to its Red Sea port of Yanbu, from where cargoes are primarily shipped to Asia. While this has not fully offset the volume of oil unable to pass through the Strait of Hormuz, it has helped limit the rise in global oil prices. Analysts stated that if Houthi attacks make it too dangerous for tankers to approach Yanbu, up to several million barrels of crude oil per day could be stranded in the Middle East. In that scenario, Saudi Arabia might be forced to cut production alongside Kuwait and Iraq.

Previous news indicated that the probability of "Israel launching a strike on Yemen before March 31, 2026" on Polymarket has risen significantly.