Prime Minister Andy Burnham is considering providing Saudi Arabia with diplomatic and military support to counter Houthi attacks in Yemen, amid UK concerns over the conflict’s growing economic impact. According to people familiar with the situation, Riyadh has approached London with requests for various forms of assistance.
Specifically, Saudi Arabia is seeking operational support for its military to counter the advance of the Iran-backed Houthis along the Red Sea coast toward the strategically vital Bab el-Mandeb Strait, as well as help in protecting oil infrastructure. It is currently unclear whether Andy Burnham is prepared to approve these requests, which the British government has not officially announced.
A British government spokesperson stated that the United Kingdom will work with partners to support regional stability but declined to comment on specific forms of assistance. The Saudi Arabia government did not respond to a request for comment.
The conflict has become one of the first major foreign policy and economic dilemmas for Andy Burnham since he took office in July. The UK is keen to avoid being drawn into another conflict in the Middle East, particularly given that London did not support President Donald Trump‘s war against Iran.
Economic consequences for the United Kingdom
At the same time, the escalation creates serious challenges for UK economic policy ahead of his government’s first budget next month. The Houthi militants’ advance in recent days and Saudi Arabia’s suspension of the East–West pipeline following attacks have pushed the price of Brent crude to nearly $110 per barrel.
Markets fear the conflict could block a route that was vital for bypassing the Strait of Hormuz during the war between the US and Iran. British officials also fear that restarting the East–West pipeline could take up to six weeks. Its shutdown is particularly significant for Saudi Arabia, as this route is its main alternative export path after the war with Iran curtailed most shipments through the Strait of Hormuz.
According to British officials, if the Houthis gain control of the Bab el-Mandeb Strait, it would have a “catastrophic” impact on international shipping and could deal a new blow to the global economy through further increases in oil prices and inflation.
Inflationary fears are already fueling expectations of interest rate hikes by the Bank of England. Yields on UK government bonds have risen, and markets are now fully pricing in five 0.25 percentage point rate hikes by the end of 2027. Such a scenario would significantly complicate the Prime Minister’s promise to lower the cost of living.
Chancellor of the Exchequer John Healey had been counting on easing inflation concerns while preparing economic forecasts. However, deteriorating market conditions could leave the government with even less room to meet its own fiscal rules. Further concern arises from the fact that the escalation is occurring just as the UK’s Office for Budget Responsibility (OBR) is preparing economic and fiscal forecasts ahead of the budget scheduled for October 28.
British military support for Saudi Arabia
Andy Burnham has already agreed to send British military advisers to Saudi Arabia to support its efforts. He is not the only leader Riyadh has approached for help. Crown Prince Mohammed bin Salman called on Donald Trump last week to launch strikes against the Houthis, though Washington has not yet intervened in the conflict beyond sending military advisers.
On Saturday, UK Foreign Secretary Ed Miliband held a phone call with Saudi Arabian Foreign Minister Faisal bin Farhan regarding the Houthi attacks. Miliband stated that “the UK stands firmly with Saudi Arabia and the internationally recognized government of Yemen.”
In 2024, under Conservative Prime Minister Rishi Sunak, British forces struck Houthi targets in Yemen in response to the group’s attacks in the Red Sea. Then-opposition leader Keir Starmer supported those strikes. Once in office as Prime Minister, Starmer deployed British military assets to Saudi Arabia, and in March, the British Sky Sabre air defense system was integrated into the country’s defense network. It includes radars, a command node, and launchers.
Source: Bloomberg
