Yemeni Deterrence Deepens Economic Crisis: Saudi Arabia Considers $8 Billion Borrowing to Cover Spending
Saudi Arabia is facing growing financial and logistical pressures amid the continued repercussions of Yemen’s blockade-for-blockade strategy and attacks targeting Saudi energy infrastructure.
Bloomberg recently reported that Saudi Arabia is considering loans of around $8 billion as mounting financial pressures affect its public finances, amid declining oil revenues and increased military and security spending.
The agency also reported that threats to Saudi vessels in the Red Sea have complicated Riyadh’s efforts to bypass risks around the Strait of Hormuz by routing oil shipments through its western coast and the port of Yanbu.
Yemeni operations and maritime restrictions have also disrupted Saudi oil tanker movements, while international reports indicate that some buyers are seeking alternative energy supplies as Saudi exports come under increasing pressure.
Yemen says its blockade-for-blockade strategy is a response to the continuing blockade and military actions against the country, and will continue until the blockade is lifted and Yemen’s rights and resources are restored.