Macro

Oil hits a five-month high as Houthi strikes on Saudi Arabia pile onto supply fears

A drone strike near Aramco's Shaybah field and an attack on Dammam's airport sent traders back to the risk premium, even as Saudi Arabia's Energy Ministry said operations at Shaybah were unaffected.

By James Mitchell · Oct 23, 2026, 10:05 PM EDT

For information only, not investment advice.

Oil climbed to a five-month high on Thursday after Houthi attacks in Saudi Arabia, Reuters reported, on worries about further disruption to supplies from the world's key exporting region. Brent crude futures touched their highest level since May 5 during the session, according to CNBC.

On Wednesday, debris from a drone intercepted by Saudi air defenses fell near a processing plant at Shaybah, an oilfield that produces about 1 million barrels a day, killing two people and injuring two, The National reported. The Saudi Energy Ministry said operations were unaffected. Hours later, an attack on King Fahd International Airport in Dammam killed at least one person and injured eight; Saudi Arabia's civil aviation authority put the death toll at one, The National reported.

Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely, people familiar with the matter told Reuters. Washington has ordered non-emergency government employees and their families to leave Saudi Arabia, citing Houthi attacks on airports and critical infrastructure.

The backdrop is a market short on detours. Flows on Saudi Arabia's East-West pipeline, a critical alternative to the Strait of Hormuz, were reportedly halted Oct. 5 after a Houthi strike on a pumping station, The National said.

"Reports of Middle East crude oil exports exceeding pre-conflict levels are more than countered by attacks on ships in the Strait of Hormuz and the Houthi strikes on Saudi Arabia and on its oil infrastructure," PVM Oil analyst Tamas Varga told Reuters. Asked about Iran, President Trump said, "Most people seem to think it's after the election," adding, "We're going to see what happens."

Tags: energy · markets-moves · analysts · white-house