Did Iran capture a US submarine? Saudi Arabia's oil exports took another blow last week when drone attacks knocked out part of the country's East-West pipeline, halting oil flow and removing 4-5 million barrels per day (bpd) of oil from global supply. It is unclear how long repairs will take, although The Associated Press estimates three to five weeks, citing two regional officials. The 1,200km (746-mile) pipeline connects the kingdom's main oil-producing fields in the east of the country with Yanbu port on the Red Sea coast in the west, allowing Saudi crude to bypass the Strait of Hormuz, which has largely remained closed since the United States-Israel war on Iran began on February 28. As the world's second-largest oil producer, Saudi Arabia's ability to keep crude flowing has significant consequences for global energy markets.

Global energy prices have spiked alarmingly again, driven largely in recent days by the escalating conflict between Yemen's Houthis and Saudi Arabia causing chaos for the oil industry. Petrol and diesel costs have risen rapidly in most countries while the wholesale price of natural gas - used for heating homes and generating electricity - has almost doubled in the UK and Europe since July. There are growing concerns of another inflationary shock on the world economy, which could cause interest rates to rise, increase mortgage costs and raise the price of almost everything in the shops including food. So what is behind this latest surge - and what are the implications for the world economy? The global oil price is currently above $108 (£80) per barrel, up from $70 (£52) in June 2026 - a roughly 50% increase.

Image caption, The Houthis denied they had targeted Mecca, where Islam's most sacred shrine is located Saudi Arabia intercepted and destroyed a Houthi drone south of the Islamic holy city of Mecca on Tuesday evening, according to the spokesman of the Saudi-led coalition in Yemen. Turki al-Maliki said the targeting of Mecca, which is the home of Islam's most sacred shrine and the focal point of the Hajj pilgrimage, was a disgraceful act. The 57-nation Organisation of Islamic Cooperation said attacks on Mecca and Medina province, where Islam's second holiest shrine is located, constituted an unacceptable and intolerable transgression. But the Houthis, an Iran-backed armed group that controls much of western Yemen, denied targeting Mecca and accused Saudi Arabia of fabrications and lies. There is no threat whatsoever from Yemen to the holy sites.

Despite pressure mounting for a clear way out of the war, meaningful negotiations between the U.S. and Iran remain stalled. Here’s what each side has said regarding the status of peace talks, and how experts predict Iranian officials could use the Houthis’ disruption in the Red Sea to their benefit.

JD Vance insists US is'on top of' Houthi advance in Red Sea JD Vance insists US is'on top of' Houthi advance in Red Sea US Vice President JD Vance says the Trump administration is "very much on top of" the Houthi advance in Yemen after they seized key islands in the Red Sea. Vance said Washington is in close contact with Saudi Arabia, and has held direct talks with the Houthis. Share JD Vance insists US is'on top of' Houthi advance in Red Sea on social media China rejects AI'threat narratives', urges global cooperation US may be'forced to intervene' in the Red Sea

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Did Iran capture a US submarine? Saudi Arabia has temporarily closed its critical East-West oil pipeline, a 1,200km (746-mile) conduit stretching across the Arabian Peninsula, after it was attacked by drones on Friday. The drones were reported to have been launched from Iraq, where an investigation is under way. No group has claimed responsibility for the strikes so far. It is understood that equipment used to operate the pipeline was also hit.

As the conflict in Yemen rages on and spills over into the Red Sea, developments in recent weeks reveal a new trend worth pondering. The Houthis group, which for years almost monopolised the advantage of drone warfare, has begun facing fire from the same weapon used by its opponents on multiple fronts. This does not mean that the balance of power has shifted, or that the Houthis have lost their missile and drone superiority. However, the increasing use of this type of warfare by the forces loyal to the internationally recognised government may change the nature of the confrontation, especially if it shifts from scattered operations to an organised and sustained capability. They were able to monitor their opponents and strike their gatherings, command centres and facilities far from the lines of contact, while government forces were mostly in a position of defence and interception.

Yemen's Houthi fighters claim to have attacked shipping in the Red Sea - a move that threatens to further escalate the already volatile situation in the Middle East. By forcing ships to turn back from the narrow Bab El Mandeb strait, they have threatened to choke off the main maritime route from Europe to Asia. It comes as US-Iran strikes continue and while a deal to develop Saudi Arabia's nuclear industry prompts fears of an arms race. So is the Middle East becoming more dangerous? So far, 2026 is sadly proving to be one of the more violent years for parts of the Middle East. For 12 consecutive nights, US Central Command (Centcom) has carried out air strikes on Iranian coastal radar, drone and missile bases.

A weapons smuggler, who used a fishing boat to ship ballistic missile parts from Iran to Houthi rebels in Yemen, has been sentenced to 40 years in a US prison. Pakistani national Muhammad Pahlawan was detained during a US military operation in the Arabian Sea in January 2024 - during which two US Navy Seals drowned. Pahlawan's crew would later testify they had been duped into taking part, having believed they were working as fishermen. The Houthis were launching sustained missile and drone attacks on Israel at the time, as well as targeting international commercial shipping in the Red Sea and Gulf of Aden, saying they were acting in support of the Palestinians in Gaza. Iran has consistently denied arming the Houthis.