Oil set for weekly gain as Saudi attacks heighten supply risks

[TOKYO] Brent oil headed for a third weekly gain as intensifying attacks on Saudi Arabia raised the risk of wider Middle East supply disruptions.

The global benchmark edged towards US$114 a barrel on Friday (Oct 23) and was up more than 3 per cent this week, while West Texas Intermediate was near US$100.

Iran-backed Houthi militants claimed recent attacks on the Saudi Red Sea port of Yanbu, as well as deadly strikes on an oil field and airport in the kingdom.

The flare-up threatens to widen hostilities around the Strait of Hormuz, where crude exports have recovered to near pre-war levels.

Brent is up more than 85 per cent in 2026 so far because of the US-Iran war, now approaching its ninth month, while refined product prices have risen even faster, most notably diesel.

At the White House on Thursday, US President Donald Trump told reporters that the US has “knocked” out Iran and threatened to go “a little bit further”, without elaborating.

The New York Times reported this week that the US and Israel have developed plans for renewed strikes against the Islamic Republic after the American midterm elections early in November.

“The latest geopolitical escalations are pointing to a more intensified strike on Iran, which is pushing crude higher throughout the price curve,” said Dennis Kissler, senior vice-president for trading at BOK Financial Securities. “Most traders are taking the latest action as a higher-for-longer for prices.”

The Yemen-based Houthis have repeatedly attacked Saudi Arabia in recent months. State-owned Aramco evacuated its Dhahran headquarters on Thursday and asked staff to work from home after an alarm, according to people familiar with the matter. The reason for the alarm was not immediately known.

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While crude flows from the Persian Gulf have recovered, oil-product shipments from the region remain constrained.

That squeeze, along with intensifying Ukrainian attacks on Russian refineries, has prompted governments to tap stockpiles. Trump is also pushing measures to lower prices ahead of the midterm elections, including a diesel deal with Moscow.

Russia, meanwhile, is seeing some relief in its domestic fuel market, with petrol and diesel production rising, Interfax reported, citing the government. Fuel inventories are also being replenished, it said. BLOOMBERG