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

SmartContractAuditor · 2026-03-28T13:31:22+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.

SmartContractAuditor

2026-03-28 13:31:22

Abstract generation in progress

Odaily Planet Daily reports that according to Wall Street Journal reporter Joe Wallace, energy analysts warn that if the Houthi armed group in Yemen resumes attacks on Red Sea shipping, the oil market could plunge into more severe turmoil. A resurgence of attacks could cut a significant amount of oil from global supply and drive up prices. Saudi Arabia has been shifting as much crude oil as possible from the Persian Gulf to its Red Sea port in Yanbu, with cargo primarily headed to Asia. While this has not fully offset the volume of oil that cannot pass through the Strait of Hormuz, it has helped to limit the rise in global oil prices. Analysts indicate that if Houthi attacks make it too dangerous for tankers near Yanbu, up to millions of barrels of crude oil per day could be stranded in the Middle East. At that point, Saudi Arabia may be forced to cut production alongside Kuwait and Iraq.

Previously, the probability of “Israel launching strikes on Yemen before March 31, 2026” on Polymarket has risen significantly.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.