Oil jumps more than 2% as Houthi attacks on Saudi Arabia fuel fears of wider Middle East conflict

The escalation is adding a fresh geopolitical risk premium to oil prices as investors increasingly worry about the security of Saudi Arabia's energy infrastructure. Yemen's Iran-aligned Houthis have threatened further strikes against Saudi oil facilities and airports, raising the possibility of disruptions to crude production and exports.

@fredyyudiawann Oct 22, 2026 · 08:07 UTC

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Why it matters

Oil prices surged Thursday as escalating Houthi attacks on Saudi Arabian infrastructure raised concerns about further disruptions to Middle East energy supplies. Brent crude climbed 2.59% to $111.64 per barrel, approaching a five-month high, while U.S. West Texas Intermediate rose 2.31% to $99.39. The rally followed another wave of attacks targeting Saudi Arabia. A drone incident at a Saudi oil field killed two people, while a separate attack on an airport in Dammam left one person dead and eight injured. Responsibility for the airport attack has not been independently established.

The attacks come as tensions across the Persian Gulf remain elevated, with commercial vessels continuing to face security threats around the Strait of Hormuz.

The U.S. State Department is also preparing to withdraw diplomatic family members from additional missions in the region, reflecting growing security concerns.

Meanwhile, U.S. crude inventories fell by approximately 3.06 million barrels last week, adding support to prices.

Although Middle East oil exports have partially recovered, traders remain concerned that renewed attacks on Saudi infrastructure could disrupt supplies.

For global markets, prolonged oil-price increases could revive inflation pressures, complicate central bank policy and weigh on equities.