Saudi Arabia has intercepted a Houthi drone south of Mecca on Tuesday evening, while the Houthi movement claimed it shot down a Saudi F-15 fighter jet over Marib province, escalating regional conflict and global oil supply concerns.
The developments come as fears are growing of a new global oil supply crisis after Houthi rebels seized the strategic islands of Greater and Lesser Hanish in the southern Red Sea after attacking a Saudi pipeline.
The Iran-backed group have been fighting a civil war in Yemen against a Saudi-led coalition since 2014.
The Iran war has forced Saudi Arabia to shift its exports away from the Persian Gulf, since Iranian attacks have stifled shipping through the gulf’s sole exit, the Strait of Hormuz.
And on Tuesday morning, Brent crude rose 1.17 per cent to $106.92 a barrel, while the average US diesel price last week surpassed $6 a gallon for the first time as the war, compounded by Ukrainian strikes on Russian refineries, further squeezed global supplies.
Meanwhile in the UK, rises in petrol, diesel and airfares has pushed UK inflation up to its highest level in five months due to disruptions from the war in Iran.
Inflation rose to 3.1 per cent from 2.9 per cent, according to the Office for National Statistics.
Houthi military spokesman Yahya Saree was quick to dismiss Saudi claims that the group had targeted Mecca, after widespread condemnation.
He stated their operations targeted Saudi military bases and oil infrastructure instead.
