Houthi attacks add new geopolitical risk to softening container rates

Repeated Houthi missile and drone attacks on Saudi Arabia’s airports and energy infrastructure have sharply escalated the Saudi-Houthi conflict, raising the prospect of renewed disruption to Red Sea shipping as the 2027 contract-tendering season gets underway. Saudi Arabia has vowed a “serious response” after strikes on Riyadh’s King Khalid International Airport killed at least 14 people and injured more than 300. The airport remains closed until at least October 17, airlines have canceled flights, and the Houthis have threatened further attacks on Saudi airports, and military targets. The Yemen-based militia overnight hit the headquarters of Aramco, the Saudi oil producer, with missiles. The attacks follow Houthi attempts beginning in July to close the Bab el-Mandeb Strait to Saudi-linked traffic, including vessel attacks into August after nearly nine months of relative quiet.