The Current Affairs Digest · ages 15+ · 2026-10-23
Oil Tops $110 as Houthi Attacks Hit Saudi Arabia
The US orders some diplomats and family members out of the kingdom.
Brent crude, the benchmark for world oil prices, rose to about $110 a barrel on Thursday 22 October, after settling at $108.82 on Wednesday. The National reported Brent up 1.7%, or $1.81, to $110.63 in early trading, and US crude (WTI) up 1.4% to $98.52. The trigger was a fresh round of attacks by the Houthis, the Yemeni group, on Saudi targets.
On Wednesday a drone attack near Shaybah, a Saudi Aramco oilfield that produces about one million barrels of crude a day, killed two people, reports said. The Saudi Energy Ministry said debris from a drone intercepted by air defences fell near a processing plant and that operations were unaffected. Hours later, an attack on King Fahd International Airport in Dammam killed one person and wounded eight, according to Saudi Arabia's civil aviation authority. The Houthis had not commented on the Dammam attack.
Washington has ordered non-emergency government employees and their families to leave Saudi Arabia, citing Houthi attacks on civilian airports and critical infrastructure. The East-West pipeline, which has a capacity of about seven million barrels a day and carries crude from eastern fields to Red Sea terminals, is a key alternative to the Strait of Hormuz. It was reportedly halted on 5 October after a Houthi strike damaged a pumping station. Kpler data showed at least 18 attacks on shipping over the previous two weeks.
The effects reached India within hours. Indian shares fell for a third straight session on Thursday, with the Sensex down 460.30 points at 73,249.39 and the Nifty 50 at 22,687.65. HDFC Sky listed worries that dearer oil could raise inflation, widen the import bill and squeeze company margins.
Why it matters
Saudi Arabia is a major oil exporter, and its alternative route around Hormuz is itself under attack. India buys much of its oil abroad, so higher prices feed into the rupee, inflation and the budget.
THE STRAIT OF HORMUZ. Oil tankers pass through this narrow strait.