Oil prices are surging and stocks are falling as the war in Yemen spreads into Saudi Arabia — bad for drivers, investors, and anyone who imports oil.

• Saudi Arabia shut down the pipeline it uses to bypass the Strait of Hormuz after Houthi attacks, and Brent crude jumped above $108.
• Saudi oil exports had already fallen to their lowest level since 2017, and this shutdown could cut them further.
• The Houthis hit a Saudi air base with missiles and drones, and they keep taking new territory — years of Saudi air strikes have not stopped them.
• Iran gains from all of this: the fighting drains US resources and hurts the Saudi economy without Iran firing at America directly.
• Stocks are also getting hit by talk of an AI slowdown, as the biggest tech players push to slow development — which may also squeeze out smaller rivals.

Outlook: The key question this week is whether the Houthis push straight into Saudi Arabia and turn this into a full-blown war, which would send oil higher still.