Saudi-UAE Tensions Rise Over Yemen Airstrike Threatening OPEC+ Coordination

A Saudi-led coalition airstrike on Yemen's Mukalla port targeting a UAE-linked shipment has heightened tensions between Saudi Arabia and the UAE. This escalation threatens their coordinated oil production policy within OPEC+ and reveals a growing rift over strategic interests in Yemen.

Insights:
A recent military escalation between Saudi Arabia SASAand the United Arab Emirates AEAE has raised concerns over the future of their cooperation within the OPEC+ framework. The Saudi-led coalition launched an airstrike on the southern Yemeni port of Mukalla, targeting what Riyadh claimed was a UAE-linked weapons shipment. In response, Saudi Arabia demanded the withdrawal of UAE forces from Yemen within 24 hours, prompting the UAE to announce the pullout of its remaining counterterrorism units from the region.
Smoke rises following a Saudi-led coalition airstrike targeting foreign military support for UAE-backed southern separatists in Yemen's southern port city of Mukalla, as seen in this screengrab from a handout video provided by Reuters on December 30, 2025. SABAA TV/Handout via REUTERS
Smoke rises following a Saudi-led coalition airstrike targeting foreign military support for UAE-backed southern separatists in Yemen's southern port city of Mukalla, as seen in this screengrab from a handout video provided by Reuters on December 30, 2025. SABAA TV/Handout via REUTERS
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