Houthi Attacks on Saudi Aramco Drive Oil Prices Higher

Houthi rebels have escalated missile and drone attacks deep into Saudi Arabia, targeting critical energy infrastructure and transportation hubs. The strikes hit the administrative and executive headquarters of Saudi Aramco in Dhahran, causing fires and injuries, and targeted the international airport in Riyadh, where an October 10 attack killed 13 people and wounded over 300. These actions, combined with escalating Iranian attacks on tankers in the Strait of Hormuz, have disrupted global shuttle trade and pushed Brent crude oil prices toward $107 per barrel.

Despite spending $83 billion annually on defense systems, including American Patriot and THAAD technology, Saudi Arabia has struggled to protect its infrastructure from Iranian-backed Houthi cruise and ballistic missiles. While Iran has offered to mediate talks, Houthi political bureau member Mohammed al-Bukhaiti rejected short-term ceasefire proposals, stating that the nature of the battle has changed.

President Donald Trump condemned the attacks, suggesting the Houthis are acting at the behest of Iran to manipulate oil prices before U.S. elections. While the United States government is maintaining a ceasefire with the rebels and avoiding direct military entanglement ahead of midterm elections, the U.S. is expected to redeploy naval equipment in the coming weeks. Trump indicated he may ask Turkish President Recep Tayyip Erdoğan to join efforts to counter the Houthi offensive.