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Saudi on target of Houthi, 4 years of peace ends; How much danger is there from oil to the world economy?

July 14, 2026 by Uma Shankar

After four years of peace, military conflict has started again between Yemen’s Houthi rebels and Saudi Arabia. It started with the dispute over Iranian aircraft and the Saudi-backed attack on Sana’a airport, in response to which the Houthis launched missile and drone attacks on Saudi’s Abha airport. This conflict has erupted at a time when America is increasing pressure on Iran and President Donald Trump is openly standing with Saudi.

Let us know why the four-year ceasefire was broken, what is the military capability of the Houthis, how much damage they can cause to Saudi oil bases and airports. Also, what impact can this conflict have on the Red Sea, global oil supply and maritime trade around the world?

Where did the latest controversy start?

The dispute started 10 days ago. A plane of Iranian airline Mahan Air landed in Sanaa, the capital of Houthi-controlled Yemen. This was the first time in more than a decade that a flight from Iran had reached Sanaa. This plane had come to take a delegation of Houthi leaders to bid farewell to former Supreme Leader of Iran Ali Khamenei.

Saudi Arabia had initially objected to this flight. Saudi feared that Iran could use this plane to send weapons and military advisors to the Houthis. When the delegation was returning from Iran, the Yemeni government and Saudi military alliance bombed the runway of Sana’a International Airport to prevent the Iranian plane from landing. As a result, the plane had to land at Hodeidah Airport, located on the Red Sea coast of Yemen, 150 km south-west of there.

Houthi counterattack

The Houthis termed this attack on Sana’a airport as an open encroachment and retaliated. On July 13, Iran-backed Houthi rebels fired ballistic missiles and drones at the international airport of Saudi Arabia’s southwestern city of Abha. Abha is a mountainous area, where Saudi citizens go to escape the summer.

The Houthis have warned that until the siege of Sanaa airport is lifted, no airline should fly in Saudi airspace. This is the first time since March 2022 that the Houthis have taken responsibility for such an attack on Saudi Arabia. With this attack, the ceasefire which has been going on since 2022 has officially been broken.

Trump’s support and behind-the-scenes diplomacy

Saudi Arabia has taken this military action against the Houthis with the consent of US President Donald Trump. According to US officials, Saudi Crown Prince Mohammed bin Salman (MBS) had already sought US support for this risky move against the Houthis. In fact, on July 9, the Saudi Ambassador in Washington met US Secretary of State Marco Rubio. Then Rubio spoke on the phone with Saudi Foreign Minister Prince Faisal bin Farhan. On the same day, President Trump spoke on the phone with the Saudi Crown Prince and supported military action against the Houthis.

US officials claim that Mahan Air is the airline of Iran’s Islamic Revolutionary Guard Corps (IRGC), which the US has banned since 2011. America believes that the plane which was returning to Sanaa carried weapons, missile parts and military experts for the Houthis.

Houthi Gfx 2

How much damage can the Houthis cause to Saudi Arabia?

Houthi rebels have modern missiles and drones provided by Iran, which are capable of targeting major targets in Saudi Arabia.

  • Threats to airports and cities: Direct missile attacks on cities like Abha and Riyadh could cause major damage to Saudi Arabia’s internal security and civil aviation.
  • Attack on oil infrastructure: Even before this, Houthis have carried out major attacks on Saudi Arabia’s oil plants. Although Saudi Arabia has prepared an option to export oil through a pipeline from the east to the Red Sea coast, bypassing the Hormuz State, but if there is a war between Saudi and Houthi rebels, then this pipeline and the Red Sea route may also be in danger.

Houthi Gfx 1

What effect will this have on the world?

The impact of this conflict will not be limited only to Yemen and Saudi Arabia, but it will affect the economy and security of the entire world.

  • Movement of ships stopped in the Red Sea: Houthi rebels have targeted several ships in the Red Sea during the Israel-Hamas war. If war with Saudi Arabia erupts, they will intensify attacks on ships passing through the Red Sea and the Bab al-Mandeb Strait. This is one of the most important trade routes in the world.
  • Global inflation and oil prices: Due to obstruction in the Red Sea route, ships have to detour to Africa, due to which the cost of freight increases manifold. Also, the fear of an attack on Saudi Arabia’s oil infrastructure could increase the price of crude oil, which would increase inflation worldwide.

This conflict between Saudi Arabia and Houthis is actually a part of the ongoing proxy war between America and Iran. The Trump administration’s blockade of Iran and military support to Saudi Arabia have increased the fear of direct conflict between the US and Iran throughout the Middle East.

Yemen’s war history

This civil war has been going on in Yemen for more than a decade. When the Houthis captured the capital Sanaa in 2014–15, the internationally recognized government was forced to flee to the south. In 2015, the Saudi-led coalition launched military intervention against the Houthis.

Also read: India’s new claim in UNSC How are elections conducted, how much support is required to win?

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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