Brent crude jumps 4% to top $113 as Aramco orders staff evacuation from headquarters

Houthi advance threatens Red Sea shipping lanes, deepening Middle East supply fears

Houthi rebel fighters inspect an armored vehicle during an offensive against Saudi-backed Yemeni forces in Marib province, eastern Yemen, on Wednesday (local time). [EPA]
Houthi rebel fighters inspect an armored vehicle during an offensive against Saudi-backed Yemeni forces in Marib province, eastern Yemen, on Wednesday (local time). [EPA]

Global oil prices surged Thursday (local time) after Yemen's Houthi rebels intensified attacks on Saudi Arabia, stoking fears of disruptions to crude supply across the Middle East.

Brent crude futures closed up $4.35, or 4.00 percent, at $113.17 a barrel on the London ICE Futures Exchange — the highest level since May. West Texas Intermediate for December delivery settled $2.32, or 2.39 percent, higher at $99.47 a barrel on the New York Mercantile Exchange.

The rally came as the Iran-aligned Houthi movement stepped up its campaign against Saudi Arabia, raising the threat to oil production and transport facilities across the region.

Yahya Sari, the Houthi military spokesperson, said in a statement that the group had carried out four major military operations deep inside Saudi territory over the preceding 48 hours, deploying ballistic missiles and drones.

The Houthis said they had successfully struck the headquarters of Saudi Arabia's Ministry of National Defense in the capital Riyadh and hit King Fahd International Airport in the eastern city of Dammam, paralyzing air traffic.

As attacks on key facilities inside Saudi Arabia continued, Saudi state oil company Aramco ordered staff at its Dhahran headquarters on the Gulf coast near Bahrain to evacuate, Reuters reported, citing multiple sources. The US government also directed non-essential personnel and their families to leave American diplomatic missions in Saudi Arabia.

Fighting between the Houthis and the Saudi-led coalition has intensified as the rebel group advances toward the Bab el-Mandeb Strait, a critical maritime chokepoint at the entrance to the Red Sea. With major Red Sea shipping routes now threatened alongside the Strait of Hormuz, anxiety over Middle East crude supply is spreading once again.

"There are reports that Middle East oil exports have surpassed pre-war levels, but concerns over vessel attacks in the Strait of Hormuz and Houthi strikes on Saudi and oil facilities are overwhelming that," said Tamas Varga, an analyst at energy consultancy PVM.


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