Brent crude prices surged above $110 a barrel on Thursday following a Houthi drone strike near Saudi Aramco's Shaybah oilfield, intensifying concerns over potential supply disruptions. The attack, which occurred near one of Saudi Arabia's largest oilfields producing about 1 million barrels daily, resulted in two fatalities and two injuries when debris from the intercepted drone struck a contractor's vehicle. Despite the incident, operations at the Shaybah field remained unaffected.
The strike on the oilfield came just hours before another attack on King Fahd International Airport in Dammam, which killed one person and injured eight. These escalating strikes on Saudi Arabia's energy and civilian infrastructure have raised alarms about the kingdom's ability to maintain stable oil exports. The East-West pipeline, a crucial alternative to the Strait of Hormuz, has also been targeted, with crude flows reportedly halted earlier this month after a Houthi strike damaged a pumping station.
The widening campaign of attacks is adding to the geopolitical risk premium in oil prices, as threats to Saudi production facilities and alternative export routes continue to mount. Washington has advised non-emergency government employees and their families to leave Saudi Arabia, citing the heightened risks posed by the Houthi attacks.