Saudi-Houthi Conflict Escalates as Oil Prices Stay Above $100
Saudi-Houthi tensions rise as Houthis expand in Yemen, claim a Saudi F-15 downing and threaten oil routes. See the latest Brent and WTI prices on September 16, 2026.
Raja Awais Ali
9/16/20265 min read
Saudi-Houthi Conflict Escalates as Yemen Fighting Raises New Oil Supply Risks
The conflict between Saudi Arabia and Yemen’s Iran-backed Houthi movement has intensified, adding fresh pressure to an already strained Middle East energy market. The Houthis said on Wednesday, September 16, that Saudi warplanes had carried out airstrikes in Yemen as the group expanded its control along parts of the Red Sea coast and near the Bab el-Mandeb Strait. Saudi Arabia has not directly confirmed the strikes, although officials from the Saudi-backed Yemeni government have acknowledged that Saudi and Yemeni forces are conducting air operations against Houthi positions.
The latest fighting follows a rapid Houthi advance over the past week. The group says it has captured several towns along Yemen’s Red Sea coast and taken control of islands near the Bab el-Mandeb Strait, one of the world's key shipping routes. The developments have increased concerns about the security of commercial shipping and the movement of oil and other energy supplies between the Middle East, Europe and Asia.
Houthi military spokesperson Yahya Saree also claimed that Houthi forces had shot down a Saudi F-15 fighter jet. However, the group did not immediately provide independent evidence to support the claim, and there was no immediate confirmation from Saudi authorities. Saree also claimed that Saudi forces had carried out as many as 450 airstrikes in Yemen during the week, but that figure has not been independently verified.
The Houthis have also continued launching attacks toward Saudi territory. Saudi authorities said on Tuesday that its air defenses intercepted a Houthi drone south of Mecca before it entered prohibited airspace over the holy city. Riyadh described the incident as a serious threat to the security of the area. The Houthis denied targeting Mecca and said the Saudi account was being used for propaganda.
The escalation is taking place as Saudi Arabia is already dealing with disruption to a major oil export route. The kingdom’s East-West Pipeline, which carries crude toward the Red Sea and allows Saudi oil to bypass the Strait of Hormuz, was damaged in earlier attacks and remains a major concern for global energy markets. The pipeline has the capacity to move around 4 million barrels of oil per day, equal to roughly 4% of global oil supply.
The pipeline disruption has already affected Saudi oil shipments. Saudi Arabia suspended some loadings at the Red Sea port of Yanbu and reduced shipments to Europe, increasing concerns about a tighter global oil market. However, Saudi Arabia has also been looking for alternative routes, including increased crude shipments through Oman’s Sohar port, which has helped reduce some immediate supply fears.
Oil prices remain above $100 a barrel despite easing from the sharp gains recorded earlier in the week. On Wednesday, September 16, Brent crude was trading around $107.53 a barrel, while U.S. West Texas Intermediate crude was around $104.19. Earlier in the session, Brent had traded near $108.16 and WTI near $104.63. The benchmarks had gained more than $3 on Tuesday and reached their highest levels since May 19 before falling on Wednesday.
The latest decline in oil prices came after a larger-than-expected increase in U.S. crude inventories. Data cited by Reuters showed that U.S. crude stocks rose by 7.1 million barrels in the week ending September 11, while analysts surveyed by Reuters had expected a decline of about 1.6 million barrels. The increase in inventories reduced some immediate pressure on prices, although supply risks in the Middle East continued to support the market.
The disruption is also being felt in fuel markets. The average U.S. retail price for diesel moved above $6.30 per gallon on Wednesday, reaching a new record. European diesel prices have also remained close to record levels as disruptions affecting Middle Eastern supplies and Russian refining capacity add pressure to the market.
The East-West Pipeline is especially important because the Strait of Hormuz has already been affected by the wider regional conflict. Saudi Arabia has used the pipeline as an alternative route for exporting crude without sending all of its oil through the strategic waterway. Any prolonged disruption to the pipeline could therefore reduce Saudi Arabia’s ability to redirect exports away from Hormuz at a time when shipping through the region is already facing serious pressure.
U.S. Energy Secretary Chris Wright said on Tuesday that oil should begin flowing through the Saudi pipeline again within days. However, other estimates have suggested that some repairs could take considerably longer. The pipeline is about 1,200 kilometers long and has historically handled between 4 million and 5 million barrels of oil per day, making its condition an important factor for global oil traders.
The latest developments also mark a sharp change in the security situation in Yemen. Saudi Arabia has led a coalition against the Houthis since 2015, but fighting had fallen significantly after a ceasefire and years of relative calm. Tensions began rising again after the Houthis announced a naval blockade against Saudi Arabia in July and launched attacks toward southern parts of the kingdom.
The renewed Houthi advance has now created a new challenge for Saudi Arabia. Control of territory near the Red Sea and the Bab el-Mandeb Strait gives the group greater influence over an important maritime corridor. The waterway connects the Red Sea with the Gulf of Aden and is used by ships carrying oil, fuel and other goods between the Middle East and Europe.
The United States has responded cautiously to the worsening situation. Washington has tightened its travel warning for Saudi Arabia and ordered government employees not to travel within 20 miles, or about 32 kilometers, of the Yemen border. The United States previously carried out a two-month campaign against the Houthis in 2025 before President Donald Trump announced a ceasefire with the group.
Saudi Crown Prince Mohammed bin Salman also spoke with Trump last week and requested military support, according to Reuters. So far, U.S. assistance has been limited mainly to intelligence support rather than direct military intervention.
That leaves Washington facing a difficult policy choice as the fighting spreads. Greater military involvement could provide additional support to Saudi Arabia but could also expand the U.S. role in another part of the Middle East conflict. At the same time, allowing the Houthi advance to continue could increase pressure on Saudi security and further disrupt important energy and shipping routes.
For global oil markets, the situation is being watched closely because several risks are developing at the same time. The Strait of Hormuz remains under pressure, the Saudi East-West Pipeline has been damaged, and the Houthis are expanding their presence near the Bab el-Mandeb Strait. These developments are occurring while global fuel markets are already dealing with tight supplies.
For now, the latest oil prices show that traders remain concerned but are also responding to signs that some Saudi crude can be redirected through alternative routes and that U.S. inventories have increased. Brent remains above $100 a barrel, while WTI is also above that level. Further changes in the fighting, the condition of Saudi oil infrastructure and the security of Red Sea shipping will remain important factors for the oil market in the days ahead.
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