Gulf Arab nations canceled a scheduled meeting with Iran on Monday following a fresh assault by Yemen’s Houthi rebels on Saudi Arabia, intensifying the ongoing Middle East conflict and raising further concerns about global oil supply stability.

The Iran-aligned Houthi group claimed responsibility for launching dozens of missiles and drones targeting a Saudi military base in Khamis Mushait, near the border with Yemen. The rebels asserted that their strikes damaged aircraft hangars, radar systems, runways, and ammunition depots.

They described the attack as retaliation for hundreds of recent Saudi air raids on Houthi positions within Yemen. In response, Saudi authorities briefly issued emergency alerts in Khamis Mushait and three other southern cities previously targeted by Houthi attacks, signaling the conflict’s expanding reach and the growing uncertainty in energy markets.

This escalation follows a swift Houthi offensive last week, culminating in their capture of an island at the Red Sea’s entrance on Friday. On the same day, Saudi Arabia accused Iran-backed militias in Iraq of attacking its east-west oil pipeline, a critical alternative route for Middle Eastern crude amid ongoing blockades of the Strait of Hormuz.

The developments coincided with the reopening of oil markets after the weekend, where crude prices surged over 3%. Meanwhile, the U.S. average retail diesel price reached a record high above $6.23 per gallon, reflecting fears of supply disruptions.

Traders warn that the Saudi pipeline closure could remove up to 4% of global oil supply if repairs are not completed soon. Satellite images revealed fire damage along the pipeline, though Riyadh has yet to specify how long the shutdown will last.

Oman was set to host talks on Monday involving Iran and Gulf states to discuss reopening the Strait of Hormuz, the world’s most vital oil shipping lane, largely closed since U.S. and Israeli strikes on Iran in late February. However, Oman’s Foreign Minister Sayyid Badr Albusaidi announced the meeting’s postponement to preserve consensus, with Iran stating the delay was requested by Saudi Arabia.

Meanwhile, Iran released a list of 77 vessels it accused of violating its Strait of Hormuz regulations. Ships on this list face penalties including fines, detention, or confiscation, with additional vessels assisting them through cargo transfers also subject to inclusion.

The intensifying conflict in Yemen presents a dilemma for Washington, which faces pressure to support its Saudi ally while avoiding expansion of the costly war. Saudi Arabia has led a coalition against the Houthis since the rebels seized Yemen’s capital in 2014. Although a ceasefire had kept the conflict relatively quiet in recent years, fighting has resumed, with Houthis pushing back forces loyal to the Saudi-backed southern government.

Thousands of Yemenis have fled inland from coastal areas as the Houthis advanced into cities such as the historic Red Sea port of Mocha last week. Aisha Muhammad, an elderly woman in government-held territory near Taiz, described how her family remains trapped amid the fighting, unable to access food or water due to blockades and gunfire.

On Friday, the Houthis took control of Perim Island, located in the Bab el-Mandeb strait, known as the “Gate of Tears,” at the Red Sea’s entrance.

U.S. President Donald Trump faces mounting pressure to end the Yemen conflict to alleviate the global energy shortage and reduce fuel prices, which are impacting his Republican Party ahead of the November mid-term elections. Despite Saudi Crown Prince Mohammed bin Salman’s appeals for U.S. intervention, Washington has so far declined to expand its involvement.

Trump confirmed recent talks with the prince and noted that the Houthis also contacted the U.S., requesting non-interference. The U.S. previously bombed Houthi targets in 2025 but ceased operations after a ceasefire agreement, in which the Houthis pledged not to attack Red Sea shipping.

While attending a golf event in Ireland, Trump expressed optimism that the Iran conflict would conclude shortly after the elections, predicting oil prices would then “drop like a rock.”