Brent rises 2.8% to $111.84 on attacks on Saudi Arabia, supply concerns
Key Facts
Oil prices rose during trading on Thursday, October 22, with Brent futures gaining 2.8% to $111.84 a barrel at 12:47 GMT, according to Investing.com, amid attacks on Saudi Arabia and concerns over disruptions to energy supplies. At the same time, U.S. West Texas Intermediate crude futures rose 2.6% to $99.67 a barrel. The gains followed a mixed session for the two benchmarks on Wednesday, when Brent futures settled at $108.82 a barrel, up a marginal 0.03%, according to Reuters. U.S. crude ended the previous session down 0.7% at $97.15 a barrel. Reuters linked the rise in oil prices to Houthi attacks on Saudi Arabia and the resulting risks to energy supplies, alongside reports of U.S.-Israeli plans for potential strikes on Iran.
The attacks hit an airport and an oil facility in the kingdom, killing and injuring people, according to Saudi statements reported by the Associated Press. Saudi Arabia's General Authority of Civil Aviation said a resident was killed and 8 people were injured in an attack on King Fahd International Airport in Dammam on Wednesday evening, October 21. The authority added that the attack also caused material damage to the airport. In a separate incident, the Saudi Energy Ministry said debris from an intercepted drone fell on an oil field operated by Aramco in the southeast of the kingdom. The ministry said the falling debris killed two people and injured two others.
Following the Houthi attacks, the U.S. State Department ordered non-essential staff to leave its embassy in Riyadh and its consulates in Saudi Arabia, according to the Associated Press. The agency linked the move to the deadly attacks in the kingdom and concerns that the fighting could spread. The departure order applies only to Saudi Arabia, while other U.S. embassies in the Gulf will undergo temporary staffing changes. The State Department described the measures at the other missions as "temporary staffing changes." The department warned of a widening conflict, saying "hostilities could escalate rapidly beyond the immediate area."
In the Strait of Hormuz, oil shipments continued despite attacks on commercial shipping, according to information the Associated Press cited from Lloyd's List Intelligence. The firm said shipments were passing through under U.S. military protection. Ships are using a route close to Oman's coast and making nighttime transits through the strait. According to the Associated Press, citing the United Kingdom Maritime Trade Operations, October recorded the highest number of reported attacks on commercial vessels since March. Oil shipments have continued to pass through amid this escalation in attacks on ships.
In the United States, Energy Information Administration data showed commercial crude inventories, excluding the Strategic Petroleum Reserve, fell by 3.1 million barrels in the week ended October 16. Inventories stood at 412.5 million barrels, 3% below the five-year average. On prices, the agency said in its October report that Brent spot prices averaged $114 a barrel in September. That was $23 a barrel above the August average. The agency also raised its forecast for the average Brent spot price in the final quarter of 2026 to $105 a barrel, up $14 from its estimate the previous month.
On the military front, Reuters cited an unnamed Iranian official in a report published on Tuesday as saying Tehran was preparing for renewed Israeli and U.S. attacks. The official said Iran was preparing for these attacks "and not for an agreement with America to end the war." The Times of Israel, citing the New York Times, reported that U.S.-Israeli exercises included flights over Iraq to simulate strike maneuvers. The reports concern plans for potential strikes, with U.S. President Donald Trump's approval to carry them out still uncertain, according to Anadolu, citing the New York Times. The reports linked the timing of the potential strikes to the period after the U.S. midterm elections scheduled for November 3.