Iran-backed Houthis launched missile and drone attacks across Saudi Arabia , targeting several cities, and oil giant Saudi Aramco’s headquarters in the east of the kingdom was hit. The attack at Aramco’s office complex in Dhahran resulted in damage to about three floors in a tower block, people familiar with the matter said. The affected tower houses some of Aramco’s main functions and its operations management office. Employees have been asked to work from home following the incident, the people said. Oil production operations haven’t been affected by the attack, one of the people said. Aramco and the Saudi energy ministry didn’t immediately respond to requests for comment. Saudi authorities said earlier a fire had erupted at the site and there were no casualties. Houthi attacks continued into Wednesday, in fighting that has killed at least 18 people and injured hundreds more in Saudi Arabia over the past week. Missiles targeted cities including the capital Riyadh, with the Saudi-led coalition fighting the Houthis saying it intercepted multiple projectiles. At the same time, Iran is escalating attacks on ships crossing the Strait of Hormuz in the Persian Gulf , potentially threatening a recovery in oil supplies . Brent crude oil has traded at or above US$100 a barrel for more than a month, contributing to inflationary pressure globally. The Saudi-led coalition said it intercepted missiles targeting Kharj, the kingdom’s southern region, Dhahran and Haradh. Shrapnel from an interception fell in a residential area in Dhahran, it said. Another volley targeted the capital and the Kharj governorate on Wednesday, according to Saudi authorities. Earlier, the Saudi cabinet warned that the Houthis would “bear the consequences” of repeated “heinous attacks” on airports, civilian and economic sites. Saudi stock exchange, the Tadawul All Share Index dropped as much as 1.8 per cent on Wednesday to the lowest since March 2023. Aramco’s shares were down as much as 1.6 per cent. The coalition on Tuesday told people in the vicinity of an oil site in Yemen’s Houthi-held capital Sanaa to leave the area “for their safety.” The Yemen Petroleum Co. later said the Al Sabah facilities and a refuelling station were hit. The company said it had emptied the fuel tanks prior to the attack. Houthi-run Al Masirah TV reported that several areas in Saada and Al Jouf were also attacked. Oil infrastructure in Saudi Arabia has also been targeted during the escalating hostilities with the Houthis. A refinery at Jazan in the west of the kingdom has been shut since an earlier attack, while a key oil export port on the Red Sea coast has also been targeted. A cross-country pipeline that’s been the main means for Aramco to get its oil to markets was temporarily shut last month following an attack. Dhahran, located on the Persian Gulf coast, is at the heart of the kingdom’s oil economy. In addition to Aramco, the region is home to a university specializing in petroleum engineering and a major air base. Saudi Arabia’s biggest oil fields are located in the deserts of the Eastern Province and in the Persian Gulf. On Tuesday, President Donald Trump issued what appeared to be a veiled threat to the militant group on social media, saying they were “purposefully trying to drive up Oil Prices” at the “behest of Iran” ahead of the United States midterm elections on Nov. 3. “I thought they learned their lesson a year ago when we bombed the HELL out of them and, at their request, stopped,” Trump wrote. “I’ll be there after the Elections, and I will never forget!” Trump said over the weekend he was considering joining the Saudi-backed campaign against Houthis. The U.S. is already assisting Riyadh with intelligence, targeting and aerial refuelling, but so far has resisted direct involvement. The fighting poses a challenge to Saudi Crown Prince Mohammed bin Salman’s efforts to transform the kingdom’s oil-rich economy into a centre for everything from tourism to finance. Flights at Riyadh’s main airport have been halted and the capital’s primary financial centre switched to remote work, just as the kingdom prepares to host a number of high-profile international events, including its flagship investor gathering. In under two weeks, the city is set to host the Future Investment Initiative, which typically draws executives from around the world. Organizers are now sizing up a range of contingency measures on how to hold the conference if the situation materially deteriorates, people familiar with the matter said. Some executives could attend panels virtually, like during the COVID pandemic, according to the people. Iran’s Art of War: How the Treasury market became the real battlefieldGlobal oil supply buffer is ‘scarily thin,’ Saudi Aramco CEO says Riyadh has been in conflict with the Houthis ever since they took control of the Yemeni capital, Sanaa, in 2014 and forced the internationally recognized government backed by Saudi Arabia to resign the following year. Tensions flared up in July, when Saudi jets struck the runway of the airport in Sanaa to prevent a Houthi delegation returning from Iran from landing. Hostilities intensified over the last week as Saudi-led forces in Yemen launched a new campaign to take back control of Houthi-held areas. —With assistance from Dana Khraiche and Omar Tamo. Bloomberg.com
