Houthis attack Saudi refinery as Iran‑backed war spreads across Red Sea

Houthis attack Saudi refinery sparks Red Sea escalation

The Houthis attack Saudi refinery on Tuesday marks the latest escalation in a war that Tehran backs, threatening the flow of crude through both the Red Sea and the Strait of Hormuz. Analysts warn that the strike could tighten an already fragile market, where ↓ 2.5% price adjustments have been recorded since the Hormuz shutdown.

Impact on global oil supply chains

With Saudi Arabia’s Ras Tanura complex temporarily offline, world oil inventories are under pressure, prompting Reuters to note a surge in tanker rerouting. The ripple effect mirrors disruptions seen during the pandemic, when supply lines were similarly strained.

“Each new attack deepens uncertainty for refiners and consumers alike,” said a senior energy trader.

Regional navies have stepped up patrols, but the broader strategic calculus suggests that Tehran may leverage maritime routes to offset sanctions, a pattern also observed in recent Bloomberg reports.