Israel strikes Yemen’s Houthi-held Red Sea port city

: Condensate, Crude oil
24/07/21

Israel's military on Saturday struck Houthi-controlled Red Sea port of Hodeidah in Yemen, in retaliation for a drone attack by the Iran-backed militant group on Tel Aviv a day earlier, further stoking heightened geopolitical tensions in a key shipping lane for the global economy.

Israel's airstrikes targeted "the power station that supplies the coastal city of Hodeidah" and also "the Hodeidah port and fuel tanks," Houthi spokesperson Yahya Saree said. The Houthi-run Al Masirah TV broadcast live footage of flames and smoke raging in the port's oil storage facilities that it said were hit.

Saree vowed an "inevitable" and "huge" retaliation to Israel's assault. Saree also claimed on Sunday that the group fired ballistic missiles targeting Eilat in southern Israel. Israel's Defence Forces (IDF) said on Sunday it intercepted a "surface-to-surface missile that approached Israeli territory from Yemen."

The IDF on 20 July officially claimed the attack on Houthi-controlled Yemeni territory. "After 9 months of continuous aerial attacks by the Houthis in Yemen toward Israel, IAF [Israeli air force] fighter jets conducted an extensive operational strike over 1,800km away against Houthi terrorist military targets in the area of Al Hudaydah Port in Yemen," the IDF said.

"This port serves as an entryway for Iranian weapons for the Houthi terrorist regime," the IDF said, and Israeli prime minister Benjamin Netanyahu made similar remarks in a televised speech.

Houthi spokesperson and chairman of Al Masirah media network Mohammed Abdulsalam in a statement on social media platform X said that the Israeli attack targeted "civilian facilities." He also vowed that the attacks will only "increase the determination of the Houthis to ramp up their support for Gaza."

Yemen's crude production collapsed soon after the start of the country's civil war, from around 170,000 b/d in 2011-13. The Houthi group uses Hodeidah's port to import some needed fuel oil shipments, with data from analytics firm Kpler suggesting the port received two shipments totalling 156,000 bls between June and July.

Hodeidah is also an entry port for humanitarian fuel and food deliveries under the UN auspices, which are then distributed both to the internationally-recognized government of Yemen and to the Houthi authorities.

Video footage posted on social media appear to show long queues in front of gas stations in Houthi-controlled areas, in anticipation of a possible fuel shortage closing in.

Yemen's internationally recognized and Saudi-backed governing body condemned Israel's attack in a statement. It also renewed its warning to "the terrorist Houthi militias against continuing to tie Yemenis' fate in service of the Iranian regime's interests and its expansionist project in the region."

Saudi Arabia's defense ministry on Sunday denied any relation or involvement in the targeting of Hodeidah, adding that the country will not allow any entity to violate its airspace.

Yemen's Houthis on 19 July claimed responsibility for a drone attack in central Tel Aviv in Israel that claimed the life of one citizen and injured eight, according to the IDF. It marked a significant escalation that risked a regional spillover of the 10-month conflict between Israel and Palestinian group Hamas, especially with Israel highlighting the Iranian origin of the UAV.

Israel and Iran avoided a full-blown war in April after a significant escalation led to exchanging direct aerial strikes against each other's territory. But the IDF attack opens yet another area of confrontation for Israel in the region in the aftermath of the 10-month conflict between between Israel and Palestinian group Hamas.

Iran-backed Houthis began attacking commercial ships in and around the Red Sea six weeks after the Israel-Hamas war broke out in October last year in what they claim is an act of solidarity with Palestinians in Gaza. Houthis are part of Tehran's so-called 'Axis of Resistance,' a regional proxy network that includes the Gaza-based Hamas militant group, Lebanon's Hezbollah and Iraqi Shia militias.

By Bachar Halabi

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/06/16

Opec keeps oil demand growth projections unchanged

London, 16 June (Argus) — Opec has kept its global oil demand growth forecasts for this year and next unchanged. The group sees oil consumption growing by 1.29mn b/d to 105.13mn b/d in 2025 and by 1.28mn b/d to 106.42mn b/d in 2026, according to its latest Oil Market Report (OMR) released today. These projections remain markedly higher than the IEA's forecasts . Opec upgraded its first quarter demand estimate, based on actual data, but said this increase was offset by lower expectations of oil demand in key consuming countries China and India in the second quarter and later in the year, mostly driven by US trade policies. In terms of supply, Opec downgraded its 2026 non-Opec+ liquids supply growth forecasts for a third month in a row, mainly driven by the effects of lower oil prices on US shale producers. Opec now sees non-Opec+ liquids supply growth growing by 730,000 b/d in 2026, compared with 800,000 b/d in last month's OMR. Opec expects US liquids output growth of 210,000 b/d, down from 460,000 b/d in March. But the group kept its 2025 non-Opec+ liquids supply growth forecast unchanged at 810,000 b/d. Opec made no reference to the ongoing conflict between Israel and Iran in its report, suggesting the hostilities have not affected its supply and demand balances. The Opec secretariat last week criticised the IEA for saying it was ready to release emergency oil stocks if necessary. Opec said there were currently "no developments in supply or market dynamics that warrant unnecessary actions" and that such statements raise "false alarms" and project "market fear." Opec+ crude production — including Mexico — rose by 180,000 b/d to 41.23mn b/d in May, according to an average of secondary sources that includes Argus . Opec puts the call on Opec+ crude at 42.7mn b/d in 2025 and 43.2mn b/d in 2026. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US oil output set for first decline in 2026 since covid

25/06/16

US oil output set for first decline in 2026 since covid

New York, 16 June (Argus) — US shale oil output is poised to decline in 2026 for the first time in five years on lower crude prices — notwithstanding the spike that followed this week's Israeli attacks on Iran — and a slowdown in rig activity, throwing a wrench in President Donald Trump's plans to open the production floodgates during his second term. US crude output next year is due to average 13.37mn b/d, down from an expected 13.42mn b/d in 2025, according to a monthly report from government agency the EIA last week. That would be the first annual decline since 2021, when the pandemic throttled oil demand. The latest projection from the statistics arm of the US Department of Energy is a far cry from the 150,000 b/d gain expected for 2026 just a few months ago, but tallies with a growing chorus of warnings from shale producers that activity is at risk of tapering off in a lower oil price environment caused by a combination of Trump's trade wars and the accelerated unwinding of Opec+ cuts. The agency cited a larger-than-expected drop in the number of active rigs last month than what it had anticipated in its Short-Term Energy Outlook (STEO) for May. "With fewer active drilling rigs, we forecast US operators will drill and complete fewer wells through 2026," the EIA said. Increased caution on the part of producers has seen the US rig count slide to its lowest since late 2021, while the inventory of drilled but uncompleted (DUC) wells has been accumulating as companies hold off for the time being. While leading shale producers such as Diamondback Energy have already raised the alarm over peak output, the administration has countered that with efforts to slash red tape and free up permitting that it hopes will underpin the sector's growth potential over the long term. Next year's anticipated decline will be partially offset by an uptick in offshore output from the Gulf of Mexico as several projects start up. Production from the region is forecast to edge up to 1.85mn b/d next year from an expected 1.81mn b/d in 2025. The EIA expects 13 fields in the Gulf of Mexico to start oil and natural gas production this year and next — more than half of which will be developed using sub-sea tiebacks or extensions to floating production units — as an area that was overshadowed during the shale boom enjoys a revival. No big deal But the shale patch slowdown is already filtering through to deal-making. While fewer mergers and acquisitions have been announced in recent months compared with the dizzying pace seen in the past few years, there have been some notable exceptions of late. US independent EOG Resources last month swooped in for privately held Encino Acquisition Partners in a $5.6bn deal to expand its footprint in the Utica shale of Ohio. By doubling down on an up-and-coming basin in its first major acquisition in almost a decade, EOG avoided the lofty valuations seen in the increasingly crowded Permian basin of west Texas and southeastern New Mexico. And earlier this month, Viper Energy — a unit of Diamondback Energy that owns and acquires mineral and royalty interests — agreed to buy Sitio Royalties for $4.1bn to expand its Permian position. "Mineral interests offer the highest form of security and upside in the oil field, and any and all benefits an operator manages to unlock accrue directly to the mineral holder without any capital risk, forever," Diamondback chief executive Kaes Van't Hof says. And despite the recent headwinds spurred by Trump's on-and-off again tariffs and a deteriorating economic outlook, long-term oil price projections in a recent survey of banks by law firm Haynes Boone were little changed from autumn. That suggests lenders that took part view the current volatility as temporary. By Stephen Cunningham DPR-5 shale oil production drivers US tight oil production Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s Santos supports $19bn Emirati oil takeover

25/06/16

Australia’s Santos supports $19bn Emirati oil takeover

Sydney, 16 June (Argus) — A consortium led by XRG PJSC, a subsidiary of Abu Dhabi's state-owned Adnoc, has put forward a A$28.8bn ($18.7bn) cash takeover bid for Australian independent oil and gas producer Santos Energy, a move that is supported by the Santos board. The Abu Dhabi Development Holding Company (ADQ) and US private equity firm Carlyle are also part of the consortium. The consortium offered to buy all of Santos' ordinary shares at A$8.89 ($5.76) per share, Santos announced on 16 June. The offer price is 28pc higher than Santos' closing share price of A$6.96 on 13 June, before the takeover bid was announced. Its share price has since risen to A$7.82 on 16 June. The Santos board intends to support the buyout and will recommend its shareholders vote in favour of the takeover, subject to reaching acceptable terms, it said in a statement on 16 June. Santos' headquarters are based in South Australia and there are levers in place to ensure the government has a say in the potential takeover, the state's minister for energy and mining Tom Koutsantonis said. A change in ownership of a licence holder must be approved by the minister under the Petroleum and Geothermal Energy Act to ensure that the state's interests, including protecting Santos jobs, are properly served, Koutsantonis said. The potential takeover will be conditional on further negotiation by the consortium and subject to approval from regulators, including the Australian Securities Exchange and the Foreign Investment Review Board. Santos first raised the possibility of a merger in 2023 . Australian independent Woodside Energy expressed interest in a $53bn merger, but it was called off in early 2024. Woodside has instead partnered with US LNG developer Tellurian and Saudi Arabia's state-owned Aramco . By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Israel’s Haifa refinery hit in Iran missile attack

25/06/15

Israel’s Haifa refinery hit in Iran missile attack

London, 15 June (Argus) — Israel's 197,000 b/d Haifa refinery has suffered damage from an Iranian missile attack but remains operational, operator Bazan said on Sunday. "The refining facilities continue to operate, while some downstream facilities at the complex have been shut down," it said. Bazan said that the attack damaged pipelines and transmission lines between the facilities in the complex in a "localised manner." The damage to the refinery marks the first direct Iranian attack on Israel's energy infrastructure since the latest round of hostilities began on Friday, 13 June. They also follow Israeli drone attacks on two gas treatment facilities in southern Iran. Iran's oil ministry said today that Israel had hit an oil storage facility in Tehran's northwestern Shahran district late on Saturday. This caused a blaze that spread to "two or three" tanks storing oil products, the Tehran fire department said. A second depot in the district of Rey, in southern Tehran, was also targeted, resulting in another fire. The oil ministry said the fires at both locations have been brought under control. Iran's oil minister, Mohsen Paknejad made a visit to the Rey depot on Sunday to survey the damage and the ongoing restoration work. Israel has temporarily taken two key gas fields offline as a precautionary measure due to the conflict. By Aydin Calik and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Israel strikes Iran gas plants in first energy attacks

25/06/14

Israel strikes Iran gas plants in first energy attacks

Dubai, 14 June (Argus) — Israel launched drone strikes on two gas treatment facilities in southern Iran on 14 June, marking the first attacks on energy infrastructure since the latest round of hostilities began on 13 June. Israeli drones targeted a gas treatment plant in Assaluyeh that processes sour gas from phase 14 of the offshore South Pars gas field, Iranian state media reported. South Pars, which Iran shares with Qatar, is the world's largest gas field and has 24 development phases. Images and videos circulating on social media showed parts of the Assaluyeh facility on fire. The plant includes four gas sweetening trains, each with a capacity of 14mn m³/d, enabling total output of up to 56mn m³/d from phase 14. At full capacity, the phase can produce 77,000 b/d of gas condensate, 2,900 t/d of LPG, 2,750 t/d of ethane and 400 t/d of sulphur. One of the four trains was hit, temporarily halting 12mn m³/d of production from one offshore platform, according to state media. A separate fire broke out at the Fajr-e-Jam gas processing plant, which handles gas from both South Pars and the Kangan field, and produces around 200 t/d of LPG and 80 t/d of gas liquids. Iran's oil ministry said emergency teams were deployed to both sites immediately after the incidents, helping to contain the fires. South Pars has been in production since 2002 and accounts for 70–75pc of Iran's total gas output. The field also supplies a significant share of feedstock for Iran's petrochemical and gasoline production. The Qatari portion of the field is known as the North field. Saturday's attacks are the first time either side has targeted energy infrastructure. Israel focused on military and nuclear sites in Natanz, Isfahan and Fordow when it launched its initial attacks in the early hours of 13 June. Iran responded with ballistic missile and drone strikes on military targets in Israel, including the Kirya complex in Tel Aviv, which houses the defence ministry headquarters. Further Israeli strikes on Iranian energy infrastructure could threaten up to 3.4mn b/d of crude output and around 1.5mn b/d of exports. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more