Iran-backed Houthi rebels launched missile and drone attacks against Saudi Arabia on Saturday, July 25, 2026 [1].

The strikes target critical energy infrastructure and maritime shipping lanes, threatening to destabilize global oil markets and escalate the long-standing rivalry between Iran and Saudi Arabia.

The Houthi forces targeted a Saudi oil refinery and two Saudi oil tankers operating in the Red Sea [2, 3, 4]. Riyadh confirmed that at least one vessel caught fire following the assault [4]. These operations were carried out using a combination of missiles and drones to penetrate Saudi defenses [1, 2].

Officials said the attacks were retaliation for recent Saudi airstrikes conducted within Yemen [2, 3]. The rebels have vowed to continue their campaign as part of a broader regional conflict linked to Iranian influence in the area [1].

The timing of the escalation coincides with significant volatility in the energy sector. Oil prices have risen to over $100 per barrel amid the conflict and the disruption of Red Sea shipping [5]. The Red Sea remains a vital artery for global trade, and the targeting of tankers increases the risk of insurance hikes, and shipping diversions [4].

Saudi Arabia has not yet announced a formal military response to the Saturday strikes, though the region remains on high alert. The Houthi movement continues to leverage its position in Yemen to pressure the Saudi government through asymmetric warfare—targeting economic assets rather than traditional military installations [1, 2].

“Houthi rebels launched missile and drone attacks against Saudi Arabia on Saturday, July 25, 2026.”

This escalation signals a shift from localized conflict in Yemen to a direct assault on Saudi Arabia's economic viability. By targeting oil refineries and tankers, the Houthis are utilizing 'energy warfare' to create global economic pressure. With oil prices already surpassing $100 per barrel, these attacks could force international maritime powers to increase their naval presence in the Red Sea to protect commercial shipping from further Iranian-backed interference.