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Houthis fire on Saudi oil sites; no US strike on Iran for first time in two weeks - Headlines news and analysis from Global Banking & Finance Review
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Houthis fire on Saudi oil sites; no US strike on Iran for first time in two weeks

Published by Global Banking & Finance Review

Posted on July 24, 2026

5 min read

· Last updated: July 25, 2026

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Houthis fire on Saudi oil sites; no US strike on Iran for first time in two weeks

Escalating Tensions in the Gulf and Red Sea

By Lefteris Papadimas and Idrees Ali

ATHENS/WASHINGTON, July 25 (Reuters) - Yemen's Iran-aligned Houthi militants fired on Saudi oil installations in two ports on the Red Sea coast on Saturday, but the U.S. held back from launching air strikes on Iran for the first night in two weeks.

Washington gave no immediate explanation of why it had abruptly halted a streak of 13 nights of escalating strikes in retaliation for Iranian attacks on shipping in the Strait of Hormuz since an interim deal to end hostilities collapsed.

"It seems that our dear Iran had a peaceful night last night," Health Ministry spokesperson Hossein Kermanpour said on X.

There were also no reports on Saturday of attacks from Iran on its Gulf neighbours, like those which have been taking place daily in response to the U.S. attacks.

US Response and Diplomatic Efforts

Axios, citing two unidentified sources familiar with the matter, said President Donald Trump on Friday directed the military not to conduct new strikes against Iran. On Saturday, a senior U.S. official told Reuters that Trump "has always been clear that his preference is diplomacy, but he has shown Iran what will happen if they fail to come to the table in a serious way.”

On Friday, Trump said the ‌U.S. and Iran were in talks to ​negotiate an end ​to their conflict, but ⁠repeated that Tehran ​was not yet ready ​for a deal.

Regional Impact and Escalation

Despite the lull in the Gulf, fighting between Iran's Houthi allies and Saudi Arabia was a sign that the war, which has already disrupted energy supplies through the Strait of Hormuz, could be spreading to a second major shipping route, and reigniting Yemen's own civil war.

Houthi Attacks on Saudi Oil Infrastructure

WAR THREATENS TO SPREAD TO YEMEN

Houthi military spokesperson Yahya Saree said the group had successfully struck sites belonging to Saudi state oil giant Aramco in Jizan and Yanbu. Video shared on social media and verified by Reuters showed a large column of smoke rising from the direction of the Aramco refinery in Jizan.

Two Asia-based trading sources said that they had been informed of potential damage to fuel and oil storage sites at Jizan. Aramco did not respond to requests for comment.

In Yanbu, two ballistic missiles aimed at oil installations were intercepted by a U.S.-made Patriot battery operated in Saudi Arabia by the Greek military under an agreement with Riyadh, Greek security sources said.

Yanbu is Saudi Arabia's main Red Sea oil port, where millions of barrels a day are loaded, and has become the main route out for Saudi oil skirting the Strait of Hormuz, which has been blockaded by Iran. Jizan, on the Red Sea close to the Yemeni border, is the site of a refinery with a capacity of 400,000 barrels per day.

Saudi and Coalition Counterstrikes

In Yemen, the air force of the Saudi-backed, internationally recognised government, which has opposed the Houthis for more than a decade, struck Houthi missile and drone launch sites and arms depots in the Marib and al-Jawf provinces, Yemeni officials said.

Earlier, the Saudi-led military alliance said it had bombed Houthi military positions on Friday in the Red Sea port of Hodeidah.

The Yemeni officials said both sides in Yemen's civil war were mobilising forces along the front.

Saudi-led Coalition Strikes Hodeidah

SAUDI-LED COALITION STRIKES HODEIDAH

Saudi Arabia has led an Arab coalition battling against the Houthis for more than a decade since the Iran-aligned fighters captured Yemen's capital, Sanaa.

The Yemeni civil war, during which hundreds of thousands of people died from fighting and famine, has been paused under a ceasefire since 2022. But that truce broke down this month, with the Houthis effectively joining the wider war their Iranian allies have waged since being attacked by the U.S. and Israel.

Economic and Global Oil Market Impact

The Houthis have declared a naval blockade of Saudi Arabia over the past week, and Houthi leader Abdul Malik al-Houthi said all Saudi oil facilities could be targets.

Global oil prices soared this week, with Brent crude spiking above $100 a barrel for the first time since May.

Trump on Friday vowed "major military punishment" for Tehran and the Houthis after the Houthis struck two Saudi tankers in the Red Sea.

An interim truce meant to end the war effectively collapsed two weeks ago, with U.S. forces striking targets in southern Iran in response to Iranian disruption of shipping in the Strait of Hormuz.

Reporting and Editorial Credits

(Reporting by Bo Erickson, Idrees Ali, Phil Stewart and Timour Azhari; Writing by Kim Coghill, Peter Graff, and Raphael Satter; Editing by Clarence Fernandez, Kevin Liffey, Sergio Non and David Gregorio)

Key Takeaways

  • The Houthi rebels targeted two Saudi tankers, the Encelia and Layla, in the Red Sea, reportedly as part of a naval blockade on Saudi Arabia, with one vessel confirmed hit and ablaze by missile near Jizan port (internazionale.it).
  • Global oil markets reacted sharply: Brent crude surged over 6%, topping $100 per barrel—the steepest jump of the conflict and a sign of mounting pressure on energy prices (internazionale.it).
  • Trump warned on social media and in interviews that Iran would be held responsible for future Houthi attacks, hinting at possible escalation of U.S. military operations and leveraging frozen Iranian assets to compensate for any shipping damages (internazionale.it).

References

Frequently Asked Questions

Why did President Trump vow to punish Iran and the Houthis?
Trump pledged 'major military punishment' for Iran and the Houthis following Houthi attacks on two Saudi oil tankers in the Red Sea.
What impact did the Red Sea attacks have on oil prices?
The attacks led to oil prices surging by over 6%, with Brent crude exceeding $100 per barrel for the first time since May.
What is the significance of the Bab el-Mandeb strait?
The Bab el-Mandeb is a key maritime chokepoint controlling access from the Red Sea to the Indian Ocean, vital for global energy shipments.
How did the US respond militarily to the attacks?
The US launched air strikes on Iran for a 13th consecutive night, prompting Iranian retaliation against neighboring Arab countries.
How have shipping routes changed since the Red Sea blockade?
Several tankers have diverted north through the Suez Canal, avoiding the Bab el-Mandeb and incurring longer, costlier routes.

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