On December 30, Saudi Arabia confirmed that its air force carried out strikes on the Yemeni port city of Mukalla, targeting weapons and military vehicles reportedly shipped from the UAE’s Fujairah port. Riyadh stated that the supplies were intended for the UAE-backed Southern Transitional Council (STC). This marks Saudi Arabia’s second strike against the group within a week, signaling that Saudi–UAE differences have escalated from political friction into direct military confrontation.
Mukalla is a strategic gateway to Yemen’s oil-producing regions, giving the incident heightened sensitivity. Saudi Arabia continues to emphasize support for Yemen’s unity, while the UAE is widely seen as tolerating the rise of southern separatist forces. Tensions between the two Gulf powers are also intensifying across multiple proxy fronts, including Yemen and Sudan, highlighting a visible fracture in what was once a close regional alliance.
Bitunix Analyst View:
The deterioration in Saudi–UAE relations has become a key variable in the Middle East’s geopolitical landscape. If tensions spill over into energy transport routes or oil-producing areas, volatility in crude markets and risk assets could rise sharply. For crypto markets, heightened geopolitical uncertainty may lift short-term risk-off sentiment and volatility, while the medium-term impact will depend on whether energy prices, USD liquidity, and global risk appetite begin to move in tandem.
