Strikes on Saudi Aramco’s Shaybah and the King Fahd International Airport in Dammam see casualties
Published Fri, Oct 23, 2026 · 06:14 AM
OIL advanced after deadly attacks in Saudi Arabia heightened concerns that escalating Middle East hostilities could hit supply, even as exports through the Strait of Hormuz climb to pre-conflict levels.
Brent climbed 4 per cent to settle near US$113 a barrel, the biggest gain in roughly two weeks, while West Texas Intermediate closed above US$99.
A drone strike on Saudi Aramco’s Shaybah field killed two people but left operations unaffected, while there were casualties from an attack on the King Fahd International Airport in Dammam. Yemen’s Houthi rebels also claimed attacks on the Saudi port of Yanbu in the past 48 hours.
The US ordered the departure of some personnel and family members from American embassies in the kingdom, underscoring growing concerns about a further escalation of the regional conflict.
Oil eased off of intraday highs spurred by the unrest by the morning in New York, as a sell-off in equities deterred investors from risky bets.
The global benchmark has surged more than 80 per cent in 2026 so far after flows from the Persian Gulf were disrupted by the US-Iran war, which is approaching its ninth month with little sign of a resolution.
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Still, crude exports have climbed recently to levels seen before the start of the war as tankers switch off their transponders to avoid detection, although oil-product shipments remain constrained.
Iran has stepped up attacks on shipping in Hormuz in recent weeks, while Teheran-backed Houthi militants have frequently targeted Saudi Arabia.
The US and Israel have developed plans for renewed strikes against Iran after November’s American midterm elections, The New York Times reported, citing US officials and other people briefed on the deliberations.
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“Continued kinetic activity and the risk of renewed escalation following the midterms are keeping a floor under prices,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.
“The result is a market struggling to sustain rallies, but with limited conviction behind the sell-offs as well.”
Kuwait is among the Gulf producers shipping more crude, exporting as much as it did before the US-Iran war began, according to Sheikh Nawaf Al-Sabah, chief executive officer of the country’s state-owned producer. However, more tankers are needed to transport jet fuel and diesel, he said.
Rising Gulf flows still face security risks. Iran’s Islamic Revolutionary Guard Corps said it hit four “violating” oil tankers while transferring cargoes in the northern Persian Gulf, without specifying when the attacks happened, Press TV reported in a post on X.
Teheran also said it may expand the scope of the conflict if what it described as “illegal” transits continue through Hormuz.
The squeeze on oil-product flows from the Gulf, along with escalating Ukrainian attacks on Russian refineries, has sent refined products even higher, most notably diesel.
Governments are tapping stockpiles to ease tightness, while US President Donald Trump is pushing measures to lower prices ahead of the midterm elections, including a diesel deal with Moscow.
The deal has received a lot of pushback from legislators, who see it as a means for Russia to pad its war chest. The Washington Post reported that Senate Democrats intend to probe the arrangement.
A tanker loaded with Russian diesel is set to sail for the US on Thursday as Moscow begins implementing the supply deal, Deputy Prime Minister Alexander Novak told reporters Wednesday, according to Tass. The vessel has a capacity of 40,000 metric tonnes, equivalent to about 300,000 barrels. BLOOMBERG