Saudi Arabia Faces Economic Crisis Amid Houthi Missile Attacks

Saudi Arabia is experiencing a severe security crisis as Iranian-backed Houthi proxies launch nearly daily missile attacks against oil installations and critical infrastructure. A major strike on October 10 killed 13 people and forced the closure of the Riyadh airport for one week. In response to the instability, Crown Prince Mohammed bin Salman has reportedly used bomb shelters in Jeddah and sought defensive cooperation from Turkey and Pakistan through the Mecca Pact.

The attacks have caused significant economic damage. The Saudi Finance Ministry forecasts a 3.6% GDP decline for 2026 and a 21.8% drop in oil activity. While the kingdom continues to seek a diplomatic solution with Tehran, it remains heavily dependent on U.S. intelligence and military support. President Donald Trump has provided intelligence but has shown no willingness to intervene directly against the Houthis.

Saudi Arabia has declined offers of assistance from Israel. Meanwhile, Saudi officials report that China is providing missile parts to the Houthis while publicly denying support for Iran.