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

Odaily · 2026-03-28T14:06:51+00:00

Analysts warn that if the Houthi forces resume attacks on Red Sea shipping, the oil market could face greater turmoil, potentially leading to oil supply cuts and rising prices. Saudi Arabia is transferring crude oil to Red Sea ports to reduce the impact, but if an attack occurs, it could cause large amounts of crude to be stranded, prompting Saudi Arabia and neighboring countries to cut production.

Odaily

2026-03-28 14:06:51

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Odaily Planet Daily News reports that, according to a Wall Street Journal reporter Joe Wallace, energy analysts warn that if the Yemen Houthi forces resume attacks on Red Sea shipping, the oil market could face even greater turmoil. A renewed attack could cut a large amount of oil out of global supply and push up oil prices. Saudi Arabia has been shifting as much crude oil as possible from the Persian Gulf to its Red Sea ports in Al Hudaydah, with shipments from there mainly going to Asia. Although this has not fully offset the volume of oil that cannot pass through the Strait of Hormuz, it has helped limit the rise in global oil prices. Analysts say that if Houthi attacks make it too dangerous for tankers to approach Al Hudaydah, then as much as several million barrels of crude oil per day could be stuck in the Middle East. At that time, Saudi Arabia might be forced to cut production together with Kuwait and Iraq.

Earlier news: On Polymarket, the probability of “Israel launching strikes against Yemen before March 31, 2026” rose sharply.

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