INSEAD Day 4 - 728x90

Borouge okays $656m dividend

The company said dividend reflects its resilience

DEWA posts record H1 profit

Revenue reaches record $4.04 billion.

Tabreed H1 revenue $308m

Blurb: Profit reaches $52 million in H1

ADNOC L&S to expand fleet

It will acquire 11 carriers for $1.3bn.

Empower profit climbs 16%

Dubai district cooling demand lifts earnings

Saudi Arabia calls Makkah security red line after Houthi drone intercepted

  • OIC condemned attacks targeting the kingdom’s holy sites.
  • The Congressional Budget Office estimated that the conflict had cost the United States more than $38 billion over its first six months.

Saudi Arabia said its air defenses intercepted and destroyed a Houthi drone south of Makkah before it could enter restricted airspace over the holy city, adding a new dimension to the regional conflict.

The Saudi-led coalition said the drone was launched by Yemen’s Houthi movement, which has been involved in a widening series of attacks against Saudi targets amid the broader Iran war. Coalition spokesman Turki al-Malki said the security of Makkah was a “red line.”

The Houthis denied targeting Makkah or other religious sites.

The incident prompted renewed concern over the expansion of fighting beyond Iran and Yemen, with Saudi Arabia increasingly drawn into attacks involving Houthi forces and other Iran-aligned groups.

The Organization of Islamic Cooperation condemned the attacks and expressed solidarity with Saudi Arabia, emphasizing the protection of Islam’s holy sites.

The incident came amid a broader escalation in attacks involving Saudi territory. The Houthis have claimed responsibility for attacks against Saudi military and other targets, while saying their actions are in response to Saudi-led strikes in Yemen.

Saudi oil pipeline remains central to regional disruption

The escalation has also affected Saudi Arabia’s energy infrastructure and export routes.

Saudi Arabia’s East-West oil pipeline was shut following an attack launched from Iraqi territory, according to the material reviewed for the report. No group claimed responsibility, while the Islamic Resistance in Iraq, an umbrella that includes Kataib Hezbollah, denied involvement.

The pipeline disruption threatens a major alternative route for Saudi oil exports at a time when shipping through the Strait of Hormuz has fallen sharply.

The pipeline carries oil toward Saudi Arabia’s Red Sea coast, allowing exports to bypass the Strait of Hormuz. Its shutdown has therefore added pressure to an already disrupted regional energy system.

Oil prices rose on Tuesday after the pipeline attack, with Brent settling more than $3 higher before giving back some of those gains on Wednesday. Saudi Arabia also halted oil loadings at Yanbu following the attack.

US Energy Secretary Chris Wright said the pipeline could return to service within days, although estimates about the repair timeline have varied.

Hormuz shipping falls to four vessels

Commercial traffic through the Strait of Hormuz remained severely reduced, with preliminary data showing only four vessel transits on Tuesday, down from seven a day earlier.

Two vessels were recorded entering the Gulf and two exiting. The figures excluded vessels with their automatic identification systems switched off and did not include any very large crude carriers or liquefied natural gas tankers.

The latest traffic level was far below the 10-day average of 18 crossings.

The Strait of Hormuz remains a critical route for global energy shipments, making the sustained reduction in traffic a major concern for oil markets and regional economies.

The disruption has also increased pressure on alternative export routes, including Saudi Arabia’s East-West pipeline, whose shutdown has reduced Riyadh’s ability to redirect shipments away from the Gulf.

US war costs exceed $38 billion

The wider Iran war is also placing growing pressure on US military resources and finances.

The Congressional Budget Office estimated that the conflict had cost the United States more than $38 billion over its first six months. The report said costs could rise by as much as $3 billion a month if the fighting continues.

The CBO also warned that sustained missile-defense operations have depleted US interceptor stocks, with replenishment potentially taking years.

The conflict has involved extensive US missile-defense operations across the Middle East as Iranian missile and drone attacks have targeted US and allied positions.

The CBO estimated that the war could also add 0.5 percentage points to US inflation during the first three months of 2027.

House again seeks limits on Iran operations

The financial and military pressures came as the US House of Representatives voted for a third time on legislation seeking to restrict the president’s authority to continue military action against Iran without congressional approval.

The measure passed 220-204, with seven Republicans joining Democrats in support.

The War Powers resolution seeks to direct the administration to remove US forces from hostilities against Iran, subject to exceptions for forces required to defend US or allied positions.

The measure is unlikely to become law if it reaches President Donald Trump, who is expected to veto it. Earlier attempts to use congressional war powers to restrict the conflict have also failed to end US military operations.

The latest vote nevertheless reflects continued congressional debate over the cost and duration of the conflict.