US Orders Its Diplomats to Leave Saudi Arabia Amid Houthi Attacks

• Oil price continues climb, exceeds $110 per barrel

The US State Department has ordered some diplomats and family members to depart from its missions in Saudi Arabia, as it is planning to move out family members from a number of other US missions in the Gulf, US officials told Reuters.

State Department spokesperson Tommy Pigott said in a post on X that the department ordered the departure of “non-emergency US government employees and their family members in Saudi Arabia only” amid attacks by the Iran-aligned Houthis in Yemen on civilian targets in the country.

Washington had returned some diplomatic personnel to the region in recent months after many were pulled out when Tehran launched retaliatory attacks on US facilities after the US-Israeli war on Iran began in late February.

“Iranian-supported Houthis have increasingly engaged in hostilities against Saudi Arabia, including attacks on civilian airports and other critical infrastructure resulting in civilian casualties and severe travel disruptions,” Pigott said.

Four US officials told Reuters that US missions in other Gulf states would also be ordering family members to leave. Pigott did not address changes to other missions outside Saudi Arabia.

The US embassy in Riyadh issued a security alert on Wednesday about possible further attacks by the Houthis on Saudi Arabia, after recent deadly strikes including on Riyadh’s airport.

Meanwhile, oil prices climbed Wednesday as worries over Middle East supply disruptions kept the market on edge, with attacks on tankers near the Strait of Hormuz and Saudi energy facilities denting sentiment.

Brent crude futures gained 1.22 per cent $110.13 a barrel, while U.S. West Texas Intermediate crude rose 1.11 per cent to $98.92 a barrel.

Iran’s Revolutionary Guards said that naval mines had prevented three tankers attempting to pass through the Strait of Hormuz using routes Tehran deemed unauthorized.

“Two violating oil tankers were set ablaze and halted due to the explosion of mines planted by the brave sailors of the IRGC Navy at an illegal crossing point in the southern part of the Strait of Hormuz,” IRGC said in a statement published on their official Sepah News website.

Adding to regional worries, Yemen’s Houthi militants claimed responsibility on Monday for strikes targeting Saudi Aramco facilities in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha.

The escalating tensions have also sent global oil shipping costs soaring, adding another layer of pressure to energy markets, a CNBC report said.

The global average crude freight rate has surged above $20 per barrel, compared with just $3 a year earlier, according to a Goldman Sachs report published Tuesday. While rates have eased slightly in recent days, they remain roughly seven times higher than a year ago.

Goldman estimated that war-risk premiums associated with crossing the Strait of Hormuz accounted for about $7 of the $20 year-on-year increase in average crude freight rates, while ship-to-ship transfers outside the Persian Gulf contributed another $4.

The investment bank warned that elevated shipping costs could widen price differences between crude grades, squeeze refiners’ profit margins and ultimately push up refined fuel prices.

“High freight costs have weighed particularly heavily on Asian refineries’ net margins, threatening their refined product output, which could then raise global refined product prices,” Goldman Sachs analysts wrote.