GCC chief condemns Houthi attacks on Saudi airports

Iran-backed Houthi militants in Yemen have claimed responsibility for a series of attacks on Saudi Arabia, potentially drawing the kingdom into a new conflict in the Middle East that has impacted global energy markets. According to a statement from the Houthis' military spokesperson, the group launched ballistic missiles and drones against the King Khalid International Airport in Riyadh, as well as Abha airport, an air base in Khamis Mushait, and two military bases near the Yemen-Saudi border.

However, the Associated Press has not been able to verify these claims. Meanwhile, a spokesperson for the Saudi-led coalition forces reported intercepting a ballistic missile north of Riyadh. These recent attacks suggest a significant escalation in the Saudi involvement in the Yemen conflict. In recent days, Saudi-led government forces have launched an offensive to weaken Houthi capabilities and retake strategic territories, including areas near the Bab el-Mandeb Strait, a crucial shipping route essential for Saudi oil exports.

The Houthis' gains over the Bab el-Mandeb have put pressure on Saudi oil sales, which have already been limited by Iran's closure of the nearby Strait of Hormuz. Approximately 12% of global trade passes through the Bab el-Mandeb, and about a fifth of the world's oil and liquefied natural gas flow through Hormuz before the U.S.-Israeli military assault on Iran began in late February.

While hopes for diplomacy to resolve the U.S.-Iran conflict remain limited, both sides are currently in a stalemate. Although recent shipping data indicates an improvement in the flow of crude from the Gulf, analysts warn that high shipping costs and a shortage of refined products may keep energy prices elevated. Oil-induced inflation is a major concern for markets, and central banks like the Federal Reserve are considering a series of interest rate hikes.

Minutes from the Federal Reserve's September policy meeting, where policymakers increased borrowing costs for the first time since 2023, are expected to be released later today. U.S. Vice President JD Vance told Reuters that Iran must significantly reduce its nuclear enrichment capacity to meet U.S. demands and end the war.