Saudi Arabia Intercepts Houthi Drone Threatening Mecca Airspace

On May 16, 2026, Saudi Arabia intercepted a Houthi drone before it could enter Mecca's airspace. The Houthi group, supported by Iran, denied the claim, calling it a 'worn-out lie.' This incident escalates the ongoing conflict, with Saudi Arabia issuing a security alert in Mecca, its first since a similar attack in 2017. The situation adds pressure to oil markets, already affected by attacks and threats associated with the region, impacting crude prices and shipping routes. Investors should note the potential volatility in oil markets due to this escalating conflict.