Houthis Strike Riyadh as Iran War Costs Reach $45 Billion and Hormuz Oil Flows Recover
Weekly Report 38 | 2026
WEEKLY REPORTS
9/20/2026
Houthi Attacks Reach the Saudi Capital
The conflict surrounding Yemen escalated significantly over the weekend after Houthi forces launched missiles and drones towards Riyadh, extending attacks deep into Saudi Arabia after weeks of fighting along the Red Sea coast.
The Houthis said they targeted military and other strategic facilities in and around the Saudi capital. The attack represented a substantial geographic expansion of the latest confrontation, following earlier Houthi strikes against Saudi military bases and oil infrastructure in the kingdom’s south and west. Saudi air defences intercepted incoming weapons, while explosions were reported around Riyadh.
The escalation follows rapid Houthi territorial gains in Yemen. The Iran-aligned movement has advanced along the Red Sea coastline and seized strategically located islands near the Bab el-Mandeb Strait. Attention has increasingly turned towards eastern Yemen, including areas containing significant oil and gas resources.
Saudi Arabia has simultaneously faced disruption to its energy infrastructure. Drone attacks damaged the East-West Pipeline, which carries crude from Saudi oilfields towards the Red Sea and provides an alternative to exports through the Strait of Hormuz. Repairs are expected to keep the pipeline out of service for weeks.
The pressure has left Riyadh dealing simultaneously with Houthi territorial advances in neighbouring Yemen, attacks against Saudi territory and continued instability around two of the region’s principal maritime corridors.
Hormuz Oil Shipments Reach Six-Month High
However, one of those corridors showed signs of improvement.
Oil and liquefied natural gas shipments through the Strait of Hormuz during the previous two weeks reached their highest level in six months, according to Admiral Brad Cooper, commander of US Central Command.
Cooper said the strait’s principal transit lanes had been cleared of mines and that Persian Gulf states had moved more than one billion barrels of crude through Hormuz during the previous several months. The United States has been working with Gulf governments, insurers and shipping companies to increase commercial traffic through the waterway.
The recovery is important because Hormuz normally carries a substantial share of internationally traded oil and gas. Shipping through the strait fell sharply after the war with Iran began, contributing to higher energy prices and forcing Gulf producers to explore alternative export routes.
The improvement does not mean that normal conditions have been fully restored. Attacks on vessels have continued during the conflict, while damage to Saudi Arabia’s pipeline has reduced one of the principal alternatives to Hormuz.
The simultaneous Houthi advance around Bab el-Mandeb has also introduced additional uncertainty at the western end of the region’s maritime network.
US Estimate Places Iran War Cost at $45.1 Billion
The financial cost of the US war with Iran has also risen substantially.
The Pentagon told Congress that the conflict had cost approximately $45.1 billion, according to reporting by CNN. The figure consisted of $43.6 billion in costs through 3 September and another $1.5 billion associated with additional fuel expenditure.
A separate US Central Command estimate reviewed by The Washington Post placed costs through early September at approximately $43.6 billion. Of that amount, about $28 billion was attributed to replacing munitions used during the conflict, while more than $4.3 billion involved equipment that had been damaged or lost. Air Force operating expenses exceeded $6.6 billion, while Navy costs were approximately $2.2 billion and Army expenses around $1.6 billion.
Neither figure represents a complete accounting.
The estimates exclude substantial potential costs associated with repairing or replacing damaged US military facilities across the Middle East. The Congressional Budget Office had previously estimated that continuing operations could cost another $2 billion to $3 billion each month, depending on the intensity of the fighting.
The latest figures represent a sharp increase from the Pentagon’s earlier estimate of $37.5 billion and provide the clearest indication so far of the scale of American military expenditure since the conflict began in February.
Iranian Nobel Peace Prize laureate Narges Mohammadi, meanwhile, told the Associated Press that ordinary Iranians were facing the combined effects of war, economic pressure and intensified domestic repression. Mohammadi, temporarily released from prison for medical reasons earlier this year, said repression had increased while economic conditions had deteriorated. These were Mohammadi’s assessments in an AP interview rather than independent findings by the news agency.
Russia Holds Parliamentary Election in Occupied Ukrainian Regions
Russia’s parliamentary election entered its final day on Sunday, with voting taking place for the first time in Ukrainian regions Moscow claims to have annexed since its 2022 invasion.
Voting for the State Duma was conducted in Russian-controlled parts of Donetsk, Luhansk, Kherson and Zaporizhzhia. Russia announced the annexation of the four regions in September 2022 despite not controlling them completely. The annexations are not internationally recognised.
Russian authorities say the territories contain more than 3.5 million eligible voters.
Ukraine condemned the voting as illegal. Ukrainian officials and human-rights groups also alleged that residents in occupied areas had faced coercion to participate. Associated Press journalists observed an armed Russian soldier standing near voters at one polling station in Russian-controlled Donetsk.
President Vladimir Putin highlighted participation by residents of the occupied territories in an address ahead of the vote, describing it as their first State Duma election since what Moscow calls their “reunification” with Russia.
The election was also being closely watched for changes in turnout and support for the political system surrounding Putin as the war approaches its fifth year. Russia has significantly restricted opposition political activity and independent media, while leading critics of the government have been imprisoned, forced abroad or otherwise prevented from participating.
German State Elections Test Merz Government
Germany also went to the polls on Sunday, with elections in Berlin and Mecklenburg-Western Pomerania following the AfD’s major gains in Saxony-Anhalt.
The votes come 16 months after Friedrich Merz became chancellor and amid economic stagnation, higher living costs and continuing disputes over migration and government spending. The AfD’s recent gains have increased pressure on Germany’s established parties.
In Mecklenburg-Western Pomerania, the AfD and governing Social Democrats entered the election competing for support, while Berlin presented a separate contest involving the CDU, Die Linke and other parties.
The results will determine the governments of the two states and provide new evidence about shifts in German voting patterns following the AfD’s gains elsewhere. They do not themselves determine whether Merz remains federal chancellor.
Israeli President Clears Former Soldier’s Criminal Record
Israeli President Isaac Herzog expunged the criminal record of former soldier Elor Azaria, a decade after Azaria fatally shot an incapacitated Palestinian attacker in the occupied West Bank.
Azaria, then an Israeli military medic, shot Abdel Fattah al-Sharif in Hebron in March 2016. Sharif had participated in a stabbing attack against an Israeli soldier and had already been shot and severely wounded when Azaria shot him in the head.
Azaria was convicted of manslaughter by an Israeli military court and initially sentenced to 18 months in prison. His sentence was subsequently reduced, and he served nine months.
The case became a major political and social controversy inside Israel. Supporters of Azaria argued that a soldier confronting an attacker should not have been prosecuted, while military leaders and critics said shooting an incapacitated person violated military rules and legal standards.
Herzog’s decision removes Azaria’s criminal record. The New York Times reported that doing so fulfilled a longstanding demand among parts of the Israeli right.
Britain and Israel Clash Over West Bank Settlements
Relations between Britain and Israel have deteriorated further over Israeli settlement expansion in the occupied West Bank.
The dispute centres partly on plans for construction in E1, an area east of Jerusalem near the Israeli settlement of Maale Adumim. British officials believed Israel had indicated that development there would not proceed, while Israeli officials dispute that any such commitment was made.
Britain, France and Canada have subsequently moved towards measures targeting trade connected to Israeli settlements.
The Financial Times reported that proposed British measures include restrictions on goods originating in settlements and possible action against companies facilitating settlement expansion. Direct British imports from settlements are relatively small, but businesses have expressed concern that sanctions could have wider effects because of complex supply chains and financial institutions’ compliance requirements.
The settlement issue has become another source of disagreement between Israel and European governments as construction continues in parts of the West Bank. Most of the international community considers Israeli settlements in occupied territory illegal under international law; Israel disputes aspects of that interpretation and maintains historical and security claims regarding the territory.
In southern Lebanon, meanwhile, the landscape along the Israeli border has been substantially altered following the latest fighting. UNIFIL peacekeepers are operating around a new restricted buffer area beyond what has become known locally as the “yellow line”, with towns including Houla, Kfar Kila and Odaisseh heavily damaged.
Trump Says Son Will Repay Russian Businessman
US President Donald Trump said his son, Donald Trump Jr., intended to repay Russian businessman Umar Kremlev for money spent on celebrations surrounding Trump Jr.’s wedding.
Earlier reporting by ProPublica and The Washington Post found that Kremlev, president of the International Boxing Association, had paid hundreds of thousands of dollars towards wedding festivities in the Bahamas.
Trump said he had asked his son about the arrangement and was told the money would be repaid. Congressional Democrats have launched an investigation into the relationship and the payments.
Trump has said he does not know Kremlev personally. Trump Jr.‘s representatives previously described Kremlev as a personal friend, while Kremlev’s representatives have said the relationship was not political.
Violent Far-Right Protest Broken Up in The Hague
Dutch riot police intervened after violence erupted during a far-right anti-immigration demonstration in The Hague.
Around 500 demonstrators threw fireworks and other objects at police, according to authorities. Police used water cannons, dogs and baton charges after officials terminated the demonstration and prohibited a planned march through the city.
Twenty-four people were arrested.
Prime Minister Rob Jetten condemned the violence and said demonstrators had deliberately sought confrontation. Justice Minister David van Weel said Hitler salutes and antisemitic slogans had been observed during the unrest.
The demonstration, organised under the banner “We are the people”, had been called to protest Dutch immigration and asylum policies.
Fatal Shark Attack Prompts Rare Kill Order in Western Australia
Away from the week’s political and military developments, authorities in Western Australia issued a rare order to kill a great white shark after a swimmer was fatally attacked off Perth.
Greg O’Neill, 63, was swimming with a friend at Sorrento Beach when he was attacked. Authorities launched a search involving boats, aircraft and drones, while surrounding beaches were closed.
Western Australia Fisheries Minister Jackie Jarvis subsequently authorised a catch-and-kill order for the shark believed responsible. Great white sharks are protected, making such orders unusual. Authorities said the decision was based on the shark remaining in the area and posing a continuing threat to public safety.
The incident followed another serious shark attack near Geraldton earlier in the week.
Oktoberfest Opens in Munich
Munich’s Oktoberfest opened on Saturday with the traditional tapping of the first beer keg.
Mayor Dominik Krause performed the ceremony at noon in the Schottenhamel tent before declaring the festival open. Twelve ceremonial gun salutes then signalled that beer could begin being served across the festival grounds.
The 2026 Oktoberfest runs from 19 September to 4 October on Munich’s Theresienwiese. Sunday’s traditional costume and riflemen’s parade includes more than 8,000 participants travelling approximately seven kilometres through central Munich.
Bachelet Withdraws From UN Leadership Contest
Former Chilean President Michelle Bachelet withdrew from the contest to become the next United Nations secretary-general after failing to secure sufficient support.
Bachelet, 74, announced the decision on Saturday. Her candidacy would have made her the first woman to lead the United Nations if successful.
Bachelet previously served two terms as president of Chile and was UN High Commissioner for Human Rights from 2018 to 2022. Her withdrawal further narrows the field ahead of the selection of a successor to the current UN leadership.
The weekend’s developments were led by another escalation around the Middle East, with Houthi attacks reaching Riyadh even as oil and gas traffic through the Strait of Hormuz recorded its strongest two-week period in six months. The Pentagon’s latest figures placed US expenditure on the Iran war at approximately $45.1 billion, while Russia held parliamentary voting in occupied Ukrainian territories. Elsewhere, German state elections took place amid changing party support, Britain and Israel remained divided over West Bank settlements, Dutch police confronted a violent far-right demonstration, and Munich opened its annual Oktoberfest.
The full source material for the developments covered in this report is available through the references below. Readers can follow the links to access the original reporting and read each story in full.
References:
Saudi Arabia, Yemen & Iran
• The New York Times — In Significant Escalation, Houthis Attack Saudi Capital
https://www.nytimes.com/2026/09/19/world/middleeast/saudi-arabia-riyadh-houthis.html
• The Washington Post — Iran war cost is now at least $43.6 billion, U.S. Central Command says
• CNN — Iran war has cost $45.1 billion, Pentagon tells Congress
https://www.cnn.com/2026/09/18/politics/us-iran-war-cost
• Bloomberg — Hormuz Oil Shipments Hit Six-Month High, US Commander Says
• Associated Press — Nobel laureate Narges Mohammadi tells the AP that Iranians are paying the price for war and repression
https://apnews.com/article/iran-us-war-narges-mohammadi-nobel-6bdfbd3fd84e4bab4d0b01176df9c7c0
Russia & Ukraine
• Associated Press — Russia holds parliamentary vote in areas it seized from Ukraine in the war
• Reuters — Russian election, cast as test of support for Ukraine war, enters final day
Germany & the Netherlands
• The Guardian — Future of German chancellor hangs in the balance as two states go to polls
• The New York Times — Germans Are Voting Again, Amid a Far-Right Surge. Here’s What to Watch.
https://www.nytimes.com/2026/09/20/world/europe/germany-afd-elections-berlin-mecklenburg.html
• Al Jazeera — Dutch riot police break up violent far-right protest in The Hague
Israel, the West Bank & Lebanon
• The New York Times — Israeli President Pardons Ex-Soldier Over Killing of Incapacitated Palestinian
https://www.nytimes.com/2026/09/19/world/middleeast/israel-pardon-azaria.html
• The Guardian — Israeli president pardons combat medic who shot dead wounded Palestinian attacker
• The New York Times — Inside the Breakdown of U.K.-Israel Relations Over West Bank Settlements
https://www.nytimes.com/2026/09/19/world/europe/uk-israel-west-bank-sanctions.html
• Financial Times — Israel’s settler economy braces for European sanctions
https://www.ft.com/content/f780b2a4-13ff-44ec-8225-cf38d4f0c966
• NPR — The new lines of southern Lebanon
United States
• The New York Times — Trump Says His Son Will Pay Back Russian Businessman for Wedding Party
https://www.nytimes.com/2026/09/19/us/politics/donald-trump-jr-wedding-russia-umar-kremlev.html
Australia
• BBC News — Perth shark attack: Rare kill order issued as victim identified as Greg O’Neill
https://www.bbc.com/news/articles/cqwyzdnk442lo
• Fox News — ‘Devoted’ father and grandfather-to-be swimming at popular beach killed in suspected fatal shark attack
Germany & Culture
• DW — Oktoberfest opens as Munich mayor taps first beer keg
https://www.dw.com/en/oktoberfest-opens-as-munich-mayor-taps-first-beer-keg/a-79336519
• Associated Press — Munich’s Oktoberfest roars to life as the mayor taps the first keg
https://apnews.com/article/germany-oktoberfest-beer-munich-73b9150319a18978b7e4e2687f5d3a0e
United Nations
• Al Jazeera — Michelle Bachelet exits UN chief race after low poll support
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