Houthi attacks on Saudi airport and oil sites escalate over weekend; Gulf markets plunge, Monday claims target East-West pipeline
What happened
Yemen's Houthis claimed seven missile and drone attacks on Saudi targets on Saturday, Oct. 24, including King Khalid International Airport in Riyadh and Saudi oil facilities, and on Sunday the Saudi-led coalition said it intercepted drones and missiles over Riyadh and ten ballistic missiles fired toward the south, issuing emergency alerts for Riyadh, Abha and Khamis Mushait. Gulf markets fell sharply Sunday: Saudi Arabia's TASI closed down 2.65% at 9,438.50, its worst session in 18 months and lowest close since March 2021, with decliners outnumbering advancers 348 to 30, while most other Gulf bourses also fell. The Houthis warned they could target King Khalid airport again even as it resumed partial operations Sunday. On Monday, the Houthis said they had attacked Saudi Arabia's East-West crude oil pumping stations, an Aramco facility in Yanbu and the Rabigh refinery — claims without Saudi confirmation — while the Saudi coalition said it destroyed five Houthi missile-storage tunnels, four launchers and a missile storage facility in Yemen.
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- Energy/oil — Brent (~$114-115) and WTI (~$101) eased Monday on the shelved Iran strike, but the Houthi threat to Saudi export infrastructure keeps a supply-risk premium in crude; any confirmed hit to the East-West pipeline would re-price this fast
- Saudi Aramco and Gulf equities — Saudi TASI fell 2.65% Sunday to 9,438.50, its lowest close since March 2021 per Binance/Sina data (Reuters early-trade read: -1.1%); Aramco, Al Rajhi Bank, Maaden and ACWA Power led declines; Egypt's EGX30 fell 5.35% intraday
- Airlines and aviation — King Khalid airport is again declared a 'military target' by the Houthis, who warned airlines, staff and travelers against using it, after the airport only just resumed partial operations
- U.S. equities broadly — a second, widening Gulf front compounds the Iran risk premium even as the direct U.S.-Iran strike was shelved; oil-driven inflation pressure is the transmission channel to the Fed path