Jeddah airport said to halt flights as Saudi tensions mount

Flights at Jeddah Airport in Saudi Arabia have reportedly been suspended. Separate reports described explosions in Saudi Arabia's Jazan region and blasts heard in Saudi oilfields. Alerts were also activated in the Jazan area, though reports say the danger has passed.

Saudi-Houthi tensions are on the rise.

Over the weekend, tensions around the kingdom escalated markedly as clashes grew more intense between Yemen's Iran-backed Houthi rebels and troops loyal to the Saudi-backed Yemeni government.

Ground operations by Saudi-backed forces against the Houthis were widened on multiple fronts, among them Hodeida, Taiz, Jawf, Marib and Bayda. Saudi Arabia was accused by the Houthis of backing airstrikes in Yemen, one of which struck a prison in Jawf province and is said to have killed seven people.

Early Tuesday, the standoff grew worse as dozens of ballistic missiles and drones were fired by the Houthis at southern Saudi Arabia. Targets included Saudi Aramco installations in Abha, Najran and Jazan, as well as King Khalid Air Base in Khamis Mushait. According to Saudi authorities, 73 people, among them women and children, were wounded, and blazes temporarily halted operations at some energy facilities and utilities.

With the fighting reignited, the relative quiet that had held since the 2022 truce is effectively over. The escalation in Yemen has, since August 23, reportedly left at least 194 dead, more than 880 injured and upwards of 21,000 displaced.

The market stakes

These strikes heighten the chance of a wider regional clash that draws in Saudi Arabia, the Houthis and, by extension, Iran. Global energy supplies also face a fresh danger as a result.

Because traffic through the Strait of Hormuz is still badly disrupted, Saudi Arabia has been diverting more crude to the Red Sea. With strikes hitting southern Saudi installations and Red Sea shipping, that backup route for maintaining oil flows is now at risk.

Crude climbed to a session high of $94.73 today. It has since retreated to around $92. The 100-hour moving average sits at $91.71, a level traders are likely to watch closely in the near term.

Now the central question is how forcefully Saudi Arabia responds. A restrained reply might keep the conflict in check, yet continued Saudi airstrikes paired with further Houthi strikes on Aramco sites or Red Sea shipping would heighten the danger of a deeper hit to worldwide oil supplies.