The capital’s flagship gateway, King Khalid International Airport, suffered a deadly strike earlier this month, killing at least 13 people and wounding more than 300. The attack, claimed by Yemen’s Iran-backed Houthis marked the worst aviation-related assault in Saudi Arabia in over a decade. Within hours, the Saudi government responded with missile raids on Yemeni oil sites, while the Houthis fired additional missiles at Saudi oil infrastructure, turning the skies over the Gulf into a new front in the protracted US-Iran conflict.
Who the Houthis are and why they can strike from across the border
Originating from the northern part of Yemen, the Houthis began as a local insurgency before expanding control after the 2014 upheaval that ousted longtime ruler Ali Abdullah Saleh. Since 2015, they have been the main opposition to the Saudi-led coalition that intervened in Yemen’s civil war. Their ties to Iran have deepened, with Tehran supplying weapons, money and technical know-how. As Gregg Carlstrom of The Economist explained, “They have used that to build an arsenal of drones and missiles” which now reach deep into Saudi territory.
Economic fallout: delayed conferences and a stalled airline
The timing could not be worse for Saudi Arabia’s diversification agenda. The country was slated to host the World Petroleum Congress from October 11–15, a gathering that usually attracts top executives from the global energy sector. Several participants pulled out after the airport attack, undermining the event’s purpose. Simultaneously, the Future Investment Initiative—often dubbed “Davos in the Desert”—was postponed until 2027 delaying a crucial showcase for foreign capital.
Even the newly-launched Riyadh Air the sovereign wealth fund’s airline created last year, felt the shock. The carrier had just begun regular flights, expanding its fleet and route network, when its home base was forced to suspend operations. Airbus planes were relocated to other Gulf airports as a precaution, hindering the airline’s growth strategy and its ambition to challenge carriers such as Emirates and Qatar Airways.
Saudi response, security concerns and diplomatic angles
Prince Abdul Aziz bin Salman, Saudi energy minister, declared that “the events of recent weeks are serious. Our response must be equally serious,” during the WPC Energy Congress. The kingdom has reportedly intercepted multiple ballistic missiles aimed at Riyadh and the eastern city of Khamis Mushait, while also shooting down a reconnaissance drone.
Airlines reacted swiftly: Qatar Airways announced a temporary suspension of flights to Riyadh and Dammam, and Etihad cancelled services between Abu Dhabi and Saudi cities. The airport is expected to stay closed until at least Saturday, and staff have been instructed to work remotely due to fears of further strikes on the financial district.
On the diplomatic front, Crown Prince Mohammed bin Salman has repeatedly appealed to President Donald Trump for direct American airstrikes against the Houthis. Trump’s response so far has been limited to intelligence sharing, citing the need to keep U.S. assets focused on safeguarding the Strait of Hormuz and ensuring uninterrupted oil flow.
What lies ahead for Saudi Arabia?
Analysts warn that as long as the Yemen-Saudi confrontation persists, confidence in Saudi infrastructure will remain fragile. Adding more air-defence batteries may reduce risk, but “no air-defence system is hermetic,” notes Carlstrom. A durable solution would require either a decisive military victory over the Houthis or a costly political settlement involving billions of dollars in reconstruction aid—a dilemma the Saudi leadership must navigate while trying to preserve its image as a safe, investment-friendly hub.
