Houthi Strikes on Saudi Oil Infrastructure Escalate Iran War

Yemen's Ansar Allah (Houthis) have inflicted major damage on Saudi Aramco's Abqaiq and Jazan facilities using ballistic missiles, cruise missiles, and drones. Abqaiq, the kingdom's largest crude-processing plant, and Jazan, its fifth-largest refinery, were hit on July 25-27, 2026. Satellite imagery and videos show fires at both sites. Saudi Arabia has not acknowledged the Abqaiq strike, claiming interceptions that Ansarullah dismisses as cover-ups. Lloyd's of London insurers have stopped providing war cargo insurance to Saudi-linked ships in the Red Sea, effectively blocking oil exports via Bab el-Mandeb. Oil prices have paradoxically dropped despite supply disruptions. Israeli Prime Minister Netanyahu plans to meet Trump to push for re-escalation against Iran, while Trump reportedly considers ordering Israel to withdraw from Gaza, Syria, Lebanon. Iran and Oman held talks in Tehran on a regional consortium to manage Strait of Hormuz traffic, but Iran rejected a proposal to keep a southern route open. The US faces potential economic crisis from energy shortages and possible internal schisms.