AGP Executive Report

Business Disruption: Riyadh’s airport has partly reopened after a two-week shutdown, but fresh Houthi attacks are keeping flights limited and disrupting regional travel and events. Gulf markets fell, while oil climbed to about $117 a barrel amid fears of further supply shocks. Shipping and Energy: Hormuz traffic remains sharply below normal, while Bab al-Mandab crossings are near historical levels. Any wider disruption could raise shipping and energy costs for Yemen and its trading partners. Yemen’s Supply Crisis: Taiz remains cut off from key routes, worsening fuel and medical shortages and preventing World Food Programme aid from reaching about 600,000 people. Regional Outlook: The IMF expects Middle East, North Africa and Pakistan output to contract 1.3% in 2026, citing conflict-related damage to energy, shipping, tourism, trade and confidence.

Energy & Markets: Brent crude rose above $117 a barrel as Houthi attacks heightened fears of supply disruption. The group claimed strikes on Saudi oil facilities and the East-West pipeline; Saudi Arabia said missiles aimed at Yanbu and Taif were intercepted, with no confirmed damage to the named energy sites. Air Travel: Riyadh airport reopened after a two-week closure, but fresh alerts and Houthi threats leave airlines and travellers facing continued uncertainty. Yemen’s Transport Ministry says Aden airport has been targeted four times this month, warning of risks to civilian travel, medical evacuations and aid deliveries. Financial Measures: Yemen’s central bank has ordered assets linked to 135 Houthi figures and entities frozen, including five tankers. Taiz: Fighting and the continuing siege are restricting supplies and movement, adding pressure on residents and health facilities.

Oil & Shipping: Brent settled at $116.72 a barrel on Friday after briefly topping $117, as Houthi attacks on Saudi targets intensified fears of supply disruption. Risks around Hormuz and Bab el-Mandeb are also raising costs for regional trade. Yemen’s Finance: The central bank ordered banks to freeze assets linked to 135 Houthi figures and entities, including five tankers, in a move aimed at curbing funding networks. Business Outlook: The IMF expects the Middle East and North Africa economy to contract 4.8% this year amid conflict and energy disruption, though it forecasts a rebound in 2027. Medicine Shortages: Yemen’s Sanaa-based health ministry says more than 1,600 medicines are scarce and 83 international companies have suspended supplies, warning of worsening pressure on patients.

Taiz’s Deepening Crisis: A tightened Houthi siege is pushing water prices up by as much as 75% and disrupting food and fuel supplies. Taiz’s main dialysis centre warns it could shut within days as diesel and medical supplies run short. Regional Trade and Energy: Foreign ministers meeting in Istanbul on October 23 condemned Houthi attacks on Saudi Arabia and Red Sea shipping, and called for attacks to stop. Brent crude settled at $116.72 a barrel on Friday, its highest close since April, amid fears that attacks on Saudi energy sites and shipping could disrupt supplies. Financial Measures: Yemen’s central bank has ordered banks to freeze assets linked to 135 Houthi-affiliated individuals and entities, including five tankers.

Oil & Shipping: Brent crude climbed to about $117 a barrel on Friday, its highest level since May, as Houthi attacks on Saudi targets and fears of wider regional conflict raised concerns over energy supplies and shipping costs. Saudi Aramco evacuated its Dhahran headquarters, while an oil spill off the UAE added to market jitters. Threats to routes including Bab al-Mandab could raise costs for exporters and importers. Business Disruption: Saudi Arabia postponed the UN World Data Forum and its national statistics forum until 2027 amid the security escalation, adding to a series of event delays. Diplomacy: Ministers from regional and European countries met in Istanbul to discuss Yemen, Gulf security and safe passage through key trade routes, warning that renewed fighting could push energy prices higher.

Energy and Trade: Brent crude climbed above $114 a barrel and US oil topped $100 as Houthi attacks on Saudi Arabia heightened fears of supply disruption. Saudi Aramco evacuated its Dhahran headquarters, while renewed threats around Bab al-Mandab put a vital trade route at risk and could raise shipping and energy costs. Investment Climate: Saudi Arabia postponed its Future Investment Initiative and two data forums until 2027 amid the security crisis, underscoring how regional instability is disrupting business events and investor engagement. Regional Response: Foreign ministers from Saudi Arabia, Egypt, Pakistan, Türkiye, the UK, France and Germany are meeting in Istanbul to discuss security and shipping. The European Parliament has also urged the EU to list the Houthis as a terrorist group and freeze their assets; the measure still requires approval by EU governments.

Energy Markets: Brent crude climbed above $112 a barrel, its highest in five months, as Houthi attacks on Saudi oil and aviation targets raised fears of supply disruption. Aramco ordered remaining staff out of its Dhahran headquarters; the IMF says the economic impact on Saudi Arabia is limited so far, but uncertainty is growing. Trade Routes: China and Djibouti warned that Red Sea and Bab al-Mandeb tensions threaten global trade, investment, energy and food security. Business Fallout: Saudi Arabia has postponed its flagship investment conference after the attacks. Sanctions: The European Parliament called for the Houthis to be listed as a terrorist group and their funds frozen, though EU member states must agree for a listing to take effect.

Oil & Trade: Houthi attacks in Saudi Arabia killed three people at an airport and oil field, prompting the US to order non-essential diplomats and families out. Brent climbed to $110.11 a barrel, while shipping attacks and flight disruptions add risk to Gulf energy trade. Yemen Finance: Yemen’s central bank has ordered assets frozen for 135 Houthi-linked individuals and entities, including five tankers, tightening pressure on networks linked to the conflict. Taiz Crisis: The siege is worsening shortages and pushing up prices in the city; aid agencies warn that residents face deepening hardship and restricted access to basic supplies.

Energy & Trade: Brent crude hovered above $110 a barrel as attacks on Gulf shipping raised supply fears. Gulf oil exports nevertheless topped prewar levels, with Saudi Arabia shifting more crude through Red Sea routes. Yemen Finance: Yemen’s central bank ordered banks to freeze assets linked to 135 Houthi-affiliated individuals and entities, including five tankers. Business Disruption: Riyadh’s airport has resumed only limited flights after Houthi strikes, while Saudi Arabia postponed its flagship investment forum—signs of the wider commercial cost of the conflict. Humanitarian Pressure: The UN warned that three million people in Taiz risk losing access to water as fighting and shortages deepen; the EU is weighing increased support for Yemen.

Energy Markets: Brent rebounded above $110 a barrel as Houthi threats to Saudi energy sites and shipping kept supply concerns high, despite a brief price dip on hopes for renewed US-Iran talks. Financial Controls: Yemen’s central bank ordered banks and exchange firms to freeze accounts and assets linked to 135 Houthi-designated people, entities and vessels, and barred transactions on their behalf. Investment Climate: Saudi Arabia postponed its flagship Future Investment Initiative conference until 2027 after a wave of attacks, underscoring how Yemen’s escalating conflict is disrupting regional business plans.

Investment Climate: Saudi Arabia postponed its flagship Future Investment Initiative conference until 2027 as Houthi attacks heightened security fears, disrupting regional business plans and investor confidence. Energy & Trade: Brent briefly topped $111 a barrel before easing on renewed Iran-Pakistan diplomacy. Claimed strikes on Saudi oil facilities and a reported tanker incident near Oman keep supply and shipping risks high, including around Yemen’s Red Sea routes. Conflict & Economy: Authorities in Shabwa raised the death toll from a Houthi strike on a government training camp to 73, as renewed fighting deepens instability. Britain will deploy RAF Typhoons on defensive missions over Saudi Arabia, expanding the regional security response.

Shabwa Attack: A Houthi missile strike on a government training camp killed at least 53 people and wounded more than 200. The attack came in energy-rich Shabwa, home to Yemen’s Balhaf LNG terminal, and amid fighting near the strategic Bab el-Mandeb shipping route; the terminal was not reported hit. Investment Risks: Saudi Arabia postponed its flagship Future Investment Initiative conference until 2027 after attacks raised security concerns, a setback to its efforts to attract foreign capital and a sign of the conflict’s wider economic fallout. Oil and Shipping: Brent crude hovered near $110 a barrel as traders weighed Houthi claims of strikes on Saudi energy and airport targets alongside wider risks to Gulf shipping.

Investment: Saudi Arabia postponed its Future Investment Initiative, a major gathering for global investors, until 2027 after Houthi attacks and flight disruptions raised security concerns. More than 45% of departures from Saudi airports have reportedly been cancelled since Oct. 8, complicating travel and business across the region. Energy and Trade: The Houthis claimed strikes on Aramco facilities in Yanbu and the Shaybah oil field, as well as Saudi airports; the claims could not be independently verified. Any disruption to energy infrastructure or shipping would add pressure to regional markets. Yemen’s Economy: A Houthi missile strike killed 53 people and wounded more than 200 at a camp in Shabwa, a province that holds major oil and gas fields and Yemen’s largest LNG terminal. The IOM says renewed fighting has displaced more than 230,000 people, deepening pressure on already strained services and household incomes.

Trade and Travel Risks: US missions warned of possible flight cancellations and airspace closures as Houthi attacks on Saudi airports and infrastructure threaten to spread disruption across the region. A reported armed-boat attack on an LNG tanker off Yemen’s coast adds to concerns over shipping routes. Energy Markets: Brent slipped about 2% to $107.57 a barrel on Monday after a five-month high, as a US waiver on Russian sanctions raised hopes of more supply. But tanker threats and disruption around the Strait of Hormuz continue to cloud the outlook. Regional Security: The GCC condemned Houthi attacks on Saudi Arabia and reaffirmed collective support for the kingdom, as Egypt weighs possible military assistance.

Shipping and Trade: Government forces launched a fresh offensive near Bab al-Mandeb, a vital link between the Red Sea and Gulf of Aden, as an armed boat opened fire on an LNG tanker off Yemen’s coast. The escalation raises fresh risks for shipping and trade. Energy Markets: Houthi attacks on Saudi Arabia and threats to Aramco are adding to concern over Gulf energy infrastructure. Brent crude recently topped $110 a barrel amid wider disruption around the Strait of Hormuz, while analysts warn that insecurity is weighing on investor confidence and regional growth. Regional Response: The GCC condemned the attacks and backed Saudi Arabia’s right to defend itself. Egypt’s parliament postponed a vote on authorizing military support, leaving the scope of Cairo’s role uncertain as fighting intensifies.

Shipping Risk: An armed skiff fired at an LNG tanker about 140 nautical miles southeast of Mukalla, UKMTO said. The vessel’s security team returned warning shots; no damage or injuries were reported. Energy Markets: Houthis have threatened further attacks on Saudi Aramco facilities, adding to fears over regional energy supplies as Brent crude approached $110 a barrel. Taiz Economy: The tightened Houthi siege is disrupting fuel deliveries, raising costs and cutting off livelihoods, while aid access for hundreds of thousands of residents is hampered. Regional Trade: Continued attacks on Red Sea shipping are also weighing on key routes and Egypt’s Suez Canal revenues, underscoring the wider economic cost of Yemen’s conflict.