Iran-Backed Houthis Strike Saudi Cities and Energy Facilities

Iran-backed Houthis attacked Saudi cities and energy facilities on Tuesday, wounding at least 73 people and reinforcing concerns that the conflict involving Iran could spread further across the Gulf.

Fires broke out at some energy installations as emergency and firefighting crews moved to contain the damage, the Saudi energy ministry said.

The attacks helped push oil prices above six-week highs as threats to production infrastructure were compounded by disruption to maritime traffic through the Red Sea and Strait of Hormuz.

Four Saudi Cities Targeted

At least 73 people were wounded across four cities in southern Saudi Arabia, according to a spokesperson for the Saudi-led coalition in Yemen.

“The coalition will take all necessary operational measures to deter this terrorist militia and resolutely confronts its hostile approach,” Colonel Turki al-Malki said in a statement on X.

The Houthis control Yemen's most populous areas and much of the country's north.

They have launched attacks toward Saudi Arabia since declaring a naval blockade against Riyadh in July, while also targeting Saudi vessels in the Red Sea.

Energy Infrastructure Under Pressure

Tuesday's strikes followed warnings from Iran that energy assets across the Gulf, including U.S. oil and gas interests, remained exposed after a series of attacks on ships in and around the Gulf last weekend.

The new pressure on Saudi infrastructure added to concerns over energy flows from the region.

Shipping disruptions in the Red Sea have already weighed on supply expectations, while Iran has continued to restrict traffic through the Strait of Hormuz.

Commodity vessel movements slowed again this week.

Before the war, roughly one-fifth of global oil and liquefied natural gas shipments passed through the strait.

Iran Threatens Maritime Exclusion Zone

Iran has also said it will announce a new restricted zone in the Gulf and publish maps for a new shipping corridor through the Strait of Hormuz.

Mohsen Rezaei, secretary of Iran's Supreme National Security Council, said the restricted area would begin where the U.S. blockade of Iran starts and extend into the Gulf.

He said vessels entering the zone would be placed on an Iranian sanctions list.

“In recent days, Washington has received a clear warning from Iran’s new missiles. Economic warfare will be met by a maritime exclusion zone across the Persian Gulf to the blockade perimeter. The operational posture toward U.S. warships and bases has been fundamentally recalibrated,” Rezaei said on X.

Rezaei appeared to be referring to the Qassem Basir ballistic missile, which Iranian media said had been fired at U.S. warships near the Strait of Hormuz.

The U.S. military said its ships had evaded any missile attacks.

Conflict Broadens Regional Risks

The six-month conflict involving Iran has moved through repeated pauses and renewed escalations since the U.S. and Israel launched attacks on February 28.

Those strikes were aimed at ending Tehran's nuclear program, limiting its ability to attack neighboring states and curbing its support for regional proxies.

U.S. barrages have degraded Iran's conventional forces and added pressure to its economy, but Tehran has retained missile and drone capabilities capable of threatening shipping and attacking Gulf states that host U.S. military bases.

The latest Houthi strikes have added a further front to those pressures by directly targeting Saudi cities and energy infrastructure.

Higher energy prices have also increased the political stakes in the U.S. ahead of November congressional elections.

President Donald Trump said oil prices would fall sharply once the conflict was won.

“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon,” Trump said on social media.