As the US-Iran war drags on, the damage is being felt regionally: Saudi Arabia experienced the worst attack in over a decade earlier this month, when Yemen’s Iran-backed Houthi militia struck an airport in the Saudi capital, Riyadh. The strike killed at least 13 people and wounded more than 300 others.
Saudi Arabia responded with missile attacks on Yemen, striking oil facilities, and the Houthis have launched more strikes of their own, targeting Saudi oil infrastructure.
The dueling strikes are the latest development in a decade-plus of conflict between Saudi and the Houthis, a political and military group that controls part of northern Yemen, which had been on pause until earlier this year after a 2022 ceasefire. But the Iran war, and Houthi affiliation with Iran’s network of proxy groups, mean the current violence has far-reaching implications for the US, Israel, and the global energy economy.
It also threatens more than just Saudi Arabia’s airports and oil industry: As Gregg Carlstrom, a Middle East correspondent for The Economist, explains, the attacks cut at the heart of the country’s project to evolve into a destination for foreign investment, travel, tourism, and more. On Monday, the country’s upcoming Future Investment Initiative was postponed until 2027.
Carlstrom, who is based in Riyadh, spoke with Today, Explained co-host Sean Rameswaram how the attack has been received inside Saudi Arabia, why it comes at an especially bad time for the country, and how President Donald Trump might — or might not — get more involved.
Below is an excerpt of their conversation, edited for length and clarity. There’s much more in the full podcast, so listen to Today, Explained wherever you get podcasts, including Apple Podcasts, Pandora, and Spotify.
Can you help us understand how the Houthis have such a presence in the country right now? Are they infiltrating the country? Are they already there?
They’re shooting from outside the country. They’re shooting from Yemen. The Houthis are a group that’s been around for a few decades. They were originally a local insurgency in Yemen that was fighting against the Yemeni government. They originate from the northern part of Yemen, but they were able to gain control of large parts of that country from 2014 onwards. Ali Abdullah Saleh, the longtime dictator of Yemen, was overthrown during the Arab Spring and the Houthis were able to seize a large chunk of territory.
They are effectively in control of most of the population centers in Yemen. They have received increasing support from Iran, which has provided them with weapons, with money, with know-how, and technical expertise. And they have used that to build an arsenal of drones and missiles, which they are using now to carry out attacks on Saudi Arabia.
And was there a particular reason they targeted the airport in Riyadh? Were they trying to send a message here?
If you listen to the messaging from the Houthis, they are trying to describe this as almost a like-for-like campaign, where you’ve had years in which the Saudi-led coalition, which invaded Yemen in 2015, has been imposing a blockade of Yemeni airspace, has been restricting flights in and out of that country.
And so the Houthis describe this publicly as being a retaliation in kind, but I think they’ve also just figured out that attacks on airports are a very effective way to cause economic disruption in Saudi Arabia. You prevent not just people from flying in and out but also, as we’ve seen disruptions to shipping via the Strait of Hormuz, a lot of cargo that these countries depend on for daily needs are coming in by air instead.
Carrying out these sorts of attacks, shutting down the airport in a capital city, is a very effective way for the Houthis to impose economic pain on the Saudis.
And I guess on some level it makes the country feel insecure. How is that making Saudi Arabia’s leader feel right now? What’s his response been?
It comes at a very difficult time for the Saudi leadership because they are supposed to be hosting a number of events this month where Saudi will be playing a role on the world stage.
There’s something called the World Petroleum Congress that is taking place this week [October 11–15], which is normally a big event that draws executives from top oil and gas companies. Many of them canceled their participation because of the attacks on the airport.
Then they are supposed to be hosting the [now-postponed] Future Investment Initiative, which is something often known outside Saudi Arabia as “Davos in the Desert.” It’s the sort of flagship investment conference that takes place here every year. It draws a who’s who of global finance.
For a country that is trying to diversify its economy, a country that is trying to attract foreign investment and make itself into a hub for finance and travel and tourism, these sorts of attacks are very detrimental to those goals.
And this is coming as Crown Prince Mohammed bin Salman and the rest of the leadership in the country is really trying to establish Saudi Arabia as the premier economic hub in the region. The stakes are really high for him right now?
They are. And just about everything that they are trying to do is being disrupted by what’s happened over the past few weeks.
If you look at travel, for example, the Public Investment Fund, which is the Saudi sovereign wealth fund, last year launched a new airline, Riyadh Air, which they are hoping will eventually compete with Emirates or Qatar Airways, the really big carriers in the Gulf.
That airline was just getting into regular operations this summer where they were growing their fleet, they were growing their network of destinations. And then suddenly this happens and their home base in Riyadh is shut down. They have moved some of their planes out of Riyadh to other airports to keep them safe from Houthi attacks. Obviously, it’s very disruptive for trying to build an air carrier.
In Riyadh itself, the financial district — this sort of long-planned attempt to set up a banking hub that might rival the one in Dubai — had just started to get going over the past couple of years, when you had banks and other financial services firms moving in there. Everybody who works there has now been told to work remotely for the foreseeable future because there is a concern about possible Houthi attacks against skyscrapers and the financial district.
Everything they are trying to do, from finance to travel to trade, all of it is being disrupted and threatened by what’s happening in Yemen.
What options does he have to reassure investors and the world really that he can protect the country and maybe especially his airport, where a bunch of the investment is focused?
The airport, I think, is going to be difficult to reassure people about. You can install additional air defenses there. You can move more batteries and more interceptors there, but at the end of the day, no air defense system is hermetic. There’s no 100 percent guarantee that you’re going to shoot down every incoming projectile.
As long as there is this ongoing war between the Houthis and Yemen and the Saudis, I think people might have ongoing concerns about the airport. You have to resolve that underlying issue to give people confidence.
Now, how do you try to resolve that? If you’re Saudi Arabia right now, you have two bad options. One is you keep fighting. You try to militarily defeat the Houthis or at least force them to accept a renewed ceasefire.
The other option is you cut a deal. You try to offer the Houthis some concessions that might encourage them to go back to the ceasefire. That’s going to be very costly for Saudi Arabia. I’ve heard that the Houthis are demanding probably billions of dollars of financial concessions where they would want the Saudis to offer some money for reconstruction and to pay the salaries of Yemeni civil servants working in Houthi-controlled areas.
If you are the Saudi leadership right now, neither one is really a good option.
Crown Prince Mohammed bin Salman has a pretty strong relationship with the president of the United States, who’s very sympathetic to Saudi Arabia and Saudi investment. Has he appealed to President Trump for help here yet?
He has. He’s done so repeatedly over the past month or so, asking not just for support with the Saudi campaign in Yemen, but for America to carry out its own airstrikes in Yemen. And the response so far from Donald Trump has been to refuse that.
For the US to get involved in a bigger way, there are some practical constraints at the moment where a lot of American military assets are tied up in the Strait of Hormuz trying to keep that open, keep oil flowing through the Strait. And so the response from Trump has been disappointing for the Saudi Crown prince. The US is providing intelligence support. It’s helping on that front, but it is not directly getting involved in the war in Yemen.