Houthis Claim Strikes on Saudi Pipeline That Bypasses Hormuz

Yemen's Houthi movement says it struck Saudi Arabia's East-West oil pipeline on Monday, October 26. Houthi military spokesman Yahya Saree said drones hit crude pumping stations along the line. He also claimed a missile strike on King Khalid International Airport in Riyadh, according to Reuters. On Saturday, the group claimed hits on an Aramco facility in Yanbu and the Rabigh refinery. Saudi Arabia has not confirmed damage to any oil site. The Saudi-led coalition said it intercepted a missile fired toward Riyadh and destroyed two launchers in Sanaa. Neither side's account has been independently verified, and no satellite evidence of damage has been reported.

The pipeline matters because of where it goes. The East-West line carries Saudi crude across the kingdom to Yanbu on the Red Sea coast. It is the main route for Saudi oil that avoids the Strait of Hormuz, which the war with Iran has largely shut. Saudi Arabia closed the pipeline for a time in September as a precaution after an earlier drone attack, Reuters reports. The Houthis have also pushed along Yemen's Red Sea coast toward the Bab el-Mandeb Strait, the southern gate to that same sea.

Markets are reacting to the risk, not to confirmed damage. Brent crude settled at $116.72 a barrel on Friday, October 23, its highest close since April. Prices eased about 2% on Monday, to near $114.60, as delegations from Saudi Arabia, Pakistan and Turkey met Iranian officials in Tehran to head off renewed fighting, the Associated Press reported. AAA put the national average for regular gasoline at $4.29 a gallon on October 25 and says pump prices are at record highs for this time of year. These figures are as of this weekend and are expected to keep moving with each new claim from the region.

A route built to avoid one chokepoint is now a target itself. That keeps fuel prices high even on days when no damage is confirmed, so fuel belongs in the household budget as a planned line rather than a surprise. Start by tracking what your household spends on gasoline and heating each month, so a price jump shows up as a number you can plan around. Combining errands and keeping the tank above half full spreads purchases out. It also leaves you ready to leave if a local emergency strikes. If you keep gasoline for a generator, add fuel stabilizer and rotate it on a schedule, so the reserve you bought at today's price still runs the engine later. A few weeks of expenses set aside covers what a pantry cannot, and planning for cash in a crisis keeps a bad month from turning into debt.

Where it stands now: the Houthi claims remain unconfirmed, and Saudi Arabia has reported no outage on the pipeline. Mediators are pressing Iran and the United States toward a deal, while Israel holds an election on Tuesday under warnings of possible attacks. Oil prices as of Monday are expected to swing with each new report. This week, check your fuel and heating costs against your economic preparedness plan. Be Prepared Not Scared!