p}ebbh5t{50]t1f2lvkeaa9(_media_dl_1.png Bloomberg RSS

Article content

(Bloomberg) — Skirmishes between Houthi rebels and Saudi Arabia intensified as a pause in the nearly two-week run of nightly US strikes on Iran raised fresh questions about President Donald Trump’s strategy in the war.

Article content

The Houthis, Islamist militants based in Yemen and backed by Iran, said they fired missiles and drones at facilities linked to oil giant Saudi Aramco in the Red Sea port towns of Jizan and Yanbu. There was no immediate confirmation from the Saudi government or Aramco. Saudi authorities briefly issued emergency warnings but retracted them and said the danger had passed.

Article content

Article content

Article content

A Saudi-led coalition responded by striking Houthi military positions later on Saturday, according to Yemen TV, a channel affiliated with the internationally recognized Yemeni government. The day before, the coalition struck the port from which the Houthis’ maritime attacks normally originate. The Houthis also announced they would blockade Saudi ports and attacked two Saudi-linked oil tankers in the Red Sea.

Article content

Article content

After attacking Iran for 13 days, the US apparently paused strikes Friday night into Saturday with no explanation or announcement. Iranian media and the government also didn’t announce any incoming attacks.

Article content

Even so, the escalation in the Red Sea — on top of the nightly US strikes on Iranian military facilities and infrastructure, as well as retaliatory attacks by Tehran — compounds an already severe squeeze on regional energy flows. 

Article content

Traffic through the Strait of Hormuz, normally the conduit for a fifth of global crude supplies, remains largely paralyzed by the hostilities. Any sustained disruption to Saudi Arabia’s Red Sea export routes, through which it’s sending millions of barrels of oil a day, mainly from Yanbu, would likely push up crude prices even more.

Article content

Article content

Trump, who is increasingly frustrated with Iran for refusing to reopen Hormuz, said late Friday that the US is “locked and loaded” for major strikes on Iran. He added he had not made a decision on whether to go ahead with them, after telling Axios a few days ago he was mulling a “massive attack.”

Article content

One ally described the president as being in revenge mode against Iran while others said he is looking to exact a cost from Tehran for the war, which has driven up energy prices and put Republicans in a tough spot politically ahead of the November midterms.

Article content

Speaking at the White House Correspondents’ Dinner, Trump said Iran would “love to make a deal” but he doesn’t think “it’s time yet.”

Article content

He also said Friday that the warring sides are talking, though his administration is offering few details.

Article content

A delegation from Oman has arrived in Tehran for talks over operations in the strait, Axios reported, citing two regional sources. It was unclear whether the US would abide by any outcome.

Article content

Brent crude has soared around 27% in the past two weeks as US-Iran clashes worsened and the Houthis effectively opened a second front in the war. The global benchmark closed on Friday at $96.78 a barrel.