Oil prices surged to a five-month high on Thursday following attacks in Saudi Arabia and strikes on tankers in the Strait of Hormuz, raising concerns over potential disruptions to global crude supply.
Key Developments
Brent crude, the international benchmark for oil prices, increased by 3%, reaching $112 a barrel for the first time since May 18. The escalation in tensions is attributed to the Yemeni Houthis, aligned with Iran, who targeted several locations in Saudi Arabia on Wednesday. This included a civilian airport in Dammam, resulting in two fatalities and eight injuries, as well as a drone attack on a Saudi oilfield that killed two more.
In a related incident, the Iranian Islamic Revolutionary Guard Corps (IRGC) reported that it struck four vessels involved in "illegal" oil transfers in the northern Gulf, which subsequently caught fire. Additionally, three vessels collided with mines west of the Strait of Hormuz. The IRGC issued a warning to the US, stating that continued provocations could provoke a broader response against its regional bases.
US Diplomatic Response
In light of the escalating situation, the US has ordered some diplomats and their family members to evacuate from their missions in Saudi Arabia. Plans are also underway to withdraw family members from several other missions across the Middle East. Saudi Aramco has instructed its staff to evacuate its headquarters in Dhahran and to work remotely.
