First Hormuz, now the Red Sea? Oil spikes as Saudis sucked into Yemen spiral

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-15T18:56:05.320Z • Permanent link

Saudis are increasingly drawn into the conflict in Yemen, a situation that has significant implications for the global oil market. The Saudi-led coalition's military operations in Yemen have been ongoing since 2015, with the aim of restoring the internationally recognized government to power. However, the conflict has been marked by frequent ceasefire violations and a lack of progress, leading to concerns about the stability of the region.

Yemen's Houthi rebels, who control much of the country, have been receiving support from Iran, which has been a major concern for Saudi Arabia and its allies. The conflict has also led to the involvement of other regional and international actors, including the United States, the United Kingdom, and the United Nations. In recent months, the situation has escalated, with the Saudi-led coalition launching a series of airstrikes against Houthi targets in Yemen. These airstrikes have been widely condemned by human rights groups and other critics, who argue that they have caused significant harm to civilians.

Key players in the conflict include Saudi Crown Prince Mohammed bin Salman, who has been the driving force behind the military campaign in Yemen. Other key figures include US President Joe Biden, who has been engaged in diplomatic efforts to bring an end to the conflict, and UN Secretary-General António Guterres, who has been working to broker a peace agreement. Data from the US Department of Defense suggests that the conflict has been costly, with estimates suggesting that the Saudi-led coalition has spent over $10 billion on military operations in Yemen since 2015.

Global oil prices have surged in recent weeks, with Brent crude futures rising by over 10% in the past month. The spike in oil prices is largely attributed to the conflict in Yemen, which has disrupted global shipping and led to concerns about the stability of the region. Companies such as Saudi Aramco, the state-owned oil giant, have been affected by the conflict, which has led to a decline in oil production and exports. Research communities have also been impacted, with many studies highlighting the potential economic and humanitarian consequences of the conflict.

Markets have been affected by the conflict, with oil prices rising sharply in response to concerns about the stability of the region. The conflict has also led to a decline in investor confidence, with many investors choosing to stay away from markets in the region. Companies such as Glencore, the Swiss-based commodities trader, have been affected by the conflict, which has led to a decline in demand for oil and other commodities. Policymakers have also been impacted, with many calling for a more effective response to the conflict and a greater focus on finding a peaceful resolution.

The conflict in Yemen is part of a larger pattern of instability in the Middle East, which has been marked by frequent conflicts and humanitarian crises. The conflict in Yemen is often compared to the Syrian Civil War, which has been ongoing since 2011. However, the conflict in Yemen has been marked by a lack of international attention and a failure of policymakers to find a peaceful resolution. The conflict has also been influenced by broader regional dynamics, including the rivalry between Saudi Arabia and Iran.