The United States has opened a new diplomatic channel with Yemen’s Houthi movement as Saudi Arabia faces mounting military and energy-security pressure following attacks on its oil infrastructure and the group’s rapid advance along Yemen’s Red Sea coast.
U.S. officials held a previously undisclosed meeting with representatives of the Houthis in Muscat, Oman, over the weekend, according to five sources familiar with the discussions cited by Reuters. The meeting took place at the U.S. Embassy in Muscat and was reportedly facilitated by Oman, which has played a mediation role in previous negotiations.
The Houthi delegation reportedly assured U.S. officials that it would continue observing the 2025 ceasefire with Washington and would not target American or Israeli vessels. The group indicated that its current military focus was on Saudi forces and Saudi-linked shipping attempting to enter the Red Sea.
The discussions came as Saudi Arabia intensified air strikes against Houthi positions while the Yemeni group continued missile and drone attacks against Saudi targets. Reuters reported on September 16 that the escalation followed a rapid Houthi advance that extended its control along Yemen’s Red Sea coastline.
The diplomatic engagement also coincided with Washington’s decision not to provide the direct military intervention Saudi Arabia had sought against the Houthis. Saudi Crown Prince Mohammed bin Salman had requested U.S. assistance as Houthi forces advanced towards strategically important areas around the Bab el-Mandeb Strait. Washington has instead maintained support through intelligence and targeting assistance.
The development has significant implications for Saudi Arabia’s oil security because the Houthi advance has unfolded alongside the shutdown of the kingdom’s East-West pipeline, one of its key routes for moving crude away from the Strait of Hormuz.
The pipeline was attacked at multiple locations on September 10, forcing Saudi Arabia to suspend operations. New assessments indicate that three pumping stations were damaged. The system had been carrying about 4 million to 5 million barrels per day before the attack, representing roughly 4 percent to 5 percent of global oil supply, while its total capacity is about 7 million barrels per day.
Saudi Arabia is now attempting to restore part of the pipeline’s capacity. Reports indicate that Saudi Aramco is working to bring about half of the system back online within days by bypassing damaged infrastructure, although full repairs could take five to six weeks. The prospect of renewed attacks remains a key risk to the recovery effort.
The pipeline disruption has also reduced the kingdom’s ability to bypass the Strait of Hormuz at a time when shipping through the waterway has already been severely affected by the wider regional conflict.
Oil inventories at Yanbu, the Red Sea export hub connected to the East-West pipeline, have also fallen sharply. Kpler data cited by Oilprice.com showed stocks had declined from about 21 million barrels in July to below 15 million barrels. At an export rate of 3.5 million barrels per day, that volume would represent only slightly more than four days of theoretical supply, although not all stored crude is necessarily available for immediate export.
Saudi Arabia has consequently explored alternative ways of moving crude. Bloomberg reported that the kingdom sold as many as 20 million barrels of crude on the spot market for loading this month and next, with some buyers expected to receive cargoes through ship-to-ship transfers outside Hormuz. The arrangement could allow tankers to avoid deeper exposure inside the Gulf but adds logistical complexity and costs.
The pressure on Saudi Arabia has intensified as the Houthis expand their territorial position in western Yemen. Reuters reported that the group recently seized strategic territory around the Bab el-Mandeb Strait, including Perim Island, after overrunning Saudi-backed forces. The advance gives the group greater proximity to one of the world's key maritime chokepoints.
The conflict has also exposed weaknesses in Saudi Arabia’s air-defence capacity. Reuters reported that Saudi Arabia has faced repeated Houthi drone and missile attacks on its territory and energy infrastructure, while reports indicate Riyadh has sought additional air-defence support from countries including France, Britain, Pakistan and Egypt.
The broader regional conflict has compounded the pressure on Gulf economies. Disruptions to oil and gas exports, repeated attacks and reduced investment confidence have increased the financial strain on Saudi Arabia. The kingdom was also reported earlier this month to have explored an $8 billion commercial loan as the war affected its finances.
Against that backdrop, President Donald Trump is expected to meet Gulf leaders on the sidelines of the United Nations General Assembly in New York next Tuesday. The meeting is expected to involve leaders or foreign ministers from Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman and focus on U.S. proposals for the next phase of the Iran war and a possible postwar strategy.
Trump said on Wednesday that he hoped the conflict was approaching its end and claimed Iran wanted a deal. Iranian officials, however, have said they are not prepared to resume negotiations unless their stated conditions are met.
The planned Gulf meeting follows the postponement of an earlier meeting involving Iran and several Gulf states. Iran and Oman had been expected to present proposals concerning the management of shipping through the Strait of Hormuz, but the talks were postponed.
The United States’ engagement with the Houthis adds another diplomatic dimension to the broader regional crisis. Reuters reported that the group’s assurances to Washington regarding American and Israeli shipping were among the factors considered by the Trump administration as it decided against direct military intervention in Yemen.
Saudi Arabia, meanwhile, has continued military operations against the Houthis. The group has responded with attacks on Saudi military installations and has threatened or targeted Saudi-linked maritime traffic. Reuters reported that the fighting intensified as Houthi forces consolidated their gains along Yemen’s Red Sea coast.
The situation has also generated competing accounts about how the renewed Saudi-Houthi confrontation developed. Robert Barnes, speaking on Daniel Davis’ Deep Dive programme and claiming to have sources within the Trump administration, alleged that Trump had encouraged Saudi Arabia to resume military action against the Houthis. That claim has not been independently established by Reuters or other authoritative sources and should therefore be treated as an allegation rather than an established account.
For the oil market, the immediate concern is whether Saudi Arabia can restore enough pipeline capacity and maintain crude exports without further attacks. Oil prices eased on September 17 and 18 as expectations of a partial restoration of Saudi supply reduced some of the immediate disruption premium.
Reuters reported on September 18 that Brent fell $2.30 to $102.53 a barrel while WTI declined $1.85 to $100.04.
However, the underlying risks remain significant. The East-West pipeline was designed to provide Saudi Arabia with an alternative route when the Strait of Hormuz becomes difficult to use. Its damage, combined with the Houthi advance towards Bab el-Mandeb, has exposed vulnerabilities on both sides of the kingdom’s crude-export network.
Any prolonged interruption to the pipeline, further attacks on Saudi energy infrastructure or additional restrictions around the Red Sea could therefore put renewed pressure on crude availability, shipping costs and refined-product markets even if prices temporarily retreat from recent highs.