Red Sea Tensions Rattle Gulf Energy: Houthi Strike on Aramco, Egypt's New Oil Blocks, and Sudan's Gold Export Surge
As Houthi drone attacks escalate, both Egypt and Sudan press ahead with new commodity-related initiatives potentially vulnerable to the Red Sea crisis
Welcome to the Monday edition of Suhail Capital, our flagship brief of the latest developments bridging Africa and the Gulf
Houthis Claim Drone Strike on Saudi Aramco’s Jizan Refinery
Yemen’s Houthi rebels claimed a drone strike on Saudi Aramco’s Jizan refinery on Sunday, hours after Saudi authorities said firefighters had extinguished a blaze at the facility. Houthi spokesman Yahya Saree called the strike “precise,” framing it as retaliation for Saudi drone incursions into northwest Yemen. Riyadh’s energy ministry confirmed the fire but did not disclose its cause, reporting no injuries. The refinery was also hit by the Houthis in July.
The attack follows the apparent collapse last month of a 2022 truce in Yemen’s civil war, with the Houthis declaring a maritime blockade of Saudi Arabia and striking tankers in the Red Sea. The escalation coincides with Iran’s ongoing blockade of the Strait of Hormuz, prompting Saudi Arabia to form a maritime pact consisting of both Middle Eastern and Northeast African countries.
Egypt to Award Seven Oil and Gas Blocks in Push for New Investment
Egypt is set to award seven oil and gas exploration blocks, aiming to attract $60-70 million in fresh investment, officials announced during a ministerial visit to the Al-Baraka field in Aswan. Samir Raslan of the South Valley Egyptian Petroleum Holding Company said six blocks in southern Egypt will likely go to Canada’s Mediterra and the state-run General Petroleum Company, while a seventh in the Red Sea is expected to be awarded to BP.
The move comes as part of Egypt’s wider push to become a net energy exporter once again. The ongoing crisis in the Red Sea, however, may spark investor uncertainty over Egypt’s energy developments located along the country’s eastern coast.
Sudan’s Official Gold Exports Match Full-Year 2025 Total in Just Six Months
Sudan’s official gold exports over the first half of 2026 matched the entire volume recorded for 2025, Minerals Minister Nour al-Dayem Taha announced Sunday, crediting new anti-smuggling measures. Speaking after meeting Prime Minister Kamel Idris, Taha said tighter controls are pushing more gold through formal banking channels.
The gains follow last week’s move by Sudan’s Security and Defence Council to establish dedicated courts for gold-smuggling cases and bar military and paramilitary forces from mining sites. The scale of past leakage is significant: Sudan produced 70 tons of gold last year, but only 14 tons were officially exported.
Such crackdowns occur amid rising Gulf investments in Sudan’s mining sector, with both Saudi Arabia and Qatar having announced gold-related partnerships with Sudan. Given the significant deposits of gold located along the country’s Red Sea coastline, the ongoing smuggling trend and Red Sea crisis elevates the risk calculus of such deals.
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