Summary

UK Prime Minister Andy Burnham is considering whether to help Saudi Arabia counter attacks from the Houthis in Yemen amid British concerns about a worsening economic hit from the escalating conflict. The premier has received requests from Saudi Arabia for a range of diplomatic and military support, according to people familiar with the matter. Those requests include operational support for the Saudi military to repel the Iran-supported group's push south along Yemen's Red Sea coast toward the Bab el-Mandeb strait, as well as help to defend against strikes on its territory oil infrastructure, they said. It's unclear whether Burnham is willing to approve the requests, which haven't been disclosed by the UK government. A spokesperson said Britain would work with partners to support regional stability, declining to be drawn on specifics. The Saudi government did not respond to a request for comment. The Saudis have also asked the US for more help, though Washington — keen not to see the Iran war escalate — has not said if it will provide extra assistance. Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay Saudi Arabia has suffered from several Houthi missile and drones attacks this month, with the militant group targeting southern towns and Red Sea ports. On Tuesday morning, Saudi authorities issued air alerts for cities including Jeddah, Yanbu, Jazan and Al Ula, a medieval site that's key to Crown Prince Mohammed bin Salman's attempts to boost tourism. While the government said the danger soon passed, dozens of people have been injured by strikes over the past week or so. The Houthis, who control land holding most of Yemen's population, have also made gains inside their country and last week captured the port of Mokha and some islands near the Bab el-Mandeb strait. While they were already disrupting shipping through the chokepoint, the extra territory tightens their grip over it. The fighting presents Burnham with one of his first major foreign policy and economic dilemmas since he became prime minister in July. The UK is determined not to get drawn into another Middle East conflict, not least because it didn't support US President Donald Trump's war on Iran. Yet the crisis is posing serious challenges for UK economic policy ahead of his administration's first budget next month. The advance by Houthi militants in recent days, and Saudi Arabia halting its East-West oil pipeline following attacks, has helped push up energy prices even more. The pipeline has been the main outlet for Saudi crude exports since the effective closure of the Strait of Hormuz. Brent crude rose 1.5% to $107.25 a barrel on Tuesday, extending its gain this month to almost 20%. Gilts extended a drop Monday as money markets added to bets on Bank of England interest rate rises off the back of inflation fears. Traders now fully price five quarter-point BoE hikes by the end of 2027, an outcome that would badly complicate the new premier's key pledge to reduce the cost of living. Pipeline Shutdown Burnham has been advised by his officials that if the Houthis take control of the Bab el-Mandeb Strait it would have a “catastrophic” impact on international shipping and provide another hit to the global economy through a further spike in the oil price and inflation, according to the people, who requested anonymity talking about behind-closed-doors discussions. British officials fear it could be as long as six weeks before a return to service for the East-West pipeline. It's a bleaker assessment than that of US Energy Secretary Chris Wright, who on Monday said he expects the conduit to be up and running “very soon.” The UK Treasury is additionally worried that the recent escalation is taking place as the Office for Budget Responsibility prepares its economic and fiscal forecasts for the Oct. 28 budget. Chancellor of the Exchequer John Healey had been hoping to see inflation concerns which are weighing on government borrowing costs ease during the assessment window. Instead, market moves are going further in the wrong direction and potentially leaving Healey with even less headroom against his budgetary rules. Burnham has agreed to send British military advisers to Saudi Arabia to support its efforts, the people said. The UK premier is not alone in receiving requests from the Saudis for support. The crown prince, known as MBS and the kingdom's de facto ruler, called Trump last week and urged him to strike the Houthis, Axios reported, though so far Washington has stayed out of the fight other than sending military advisers. On Saturday, UK Foreign Secretary Ed Miliband spoke by phone to Saudi Foreign Minister Faisal bin Farhan to discuss the Houthi attacks. “The UK stands firmly with Saudi Arabia and the internationally-recognized Government of Yemen,” Miliband said. The Houthis seized the capital, Sanaa, in 2014, triggering a civil war that still divides the country. The Saudis back the internationally-recognized government. In 2024, under Conservative former premier Rishi Sunak, Britain's military struck Houthi targets in Yemen in response to the group launching attacks in the Red Sea. Labour's then opposition leader Keir Starmer supported the strikes. As premier, Starmer later deployed military assets to Saudi Arabia, and in March, Britain's Sky Sabre air defense system was integrated into the country, including radars, a control node and missile launchers. Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.