Fortune·6 min read

Saudi Arabia faces nightmare scenario as Houthis threaten shipping route and drones close pipeline

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Elena Becatoros, Joseph Krauss, The Associated Press
Saudi Arabia faces nightmare scenario as Houthis threaten shipping route and drones close pipeline
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A lightning advance by Houthi rebels threatens a crucial Red Sea shipping route . Drone attacks blamed on Iraqi militias have forced the closure of a major pipeline, and Iran is still disrupting the Strait of Hormuz .

It’s a nightmare scenario for Saudi Arabia, and it has sent jitters through global markets.

The Saudis’ most essential ally, the United States, has been unpredictable and sometimes unreliable . U.S. President Donald Trump seems reluctant to widen an already unpopular and stalemated Mideast war ahead of congressional elections. For Iran, the rebels’ advance and closure of the pipeline ramp up global economic pressure as its grip over the Strait of Hormuz has been loosened .

Michael Ratney, a former U.S. ambassador to Saudi Arabia, said the latest developments are “incredibly frustrating” for the kingdom.

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