Brent Crude Hits Five-Month High Above $112 After Houthi Strikes Kill Four at Saudi Aramco Sites and US Orders Diplomat Evacuation

Brent crude surged to a five-month high above $112 per barrel on October 22, with some quotes reaching $113, as Iran-backed Houthi militants launched deadly strikes on Saudi Arabia's Eastern Province, killing four people in attacks on an Aramco oil field and a regional airport. Saudi Aramco evacuated its headquarters in Dhahran and asked staff to work remotely. The United States ordered some diplomats and their families to leave Saudi Arabia in response to the escalating Houthi threat, adding urgency to an already tense market. WTI crude tested the $100 level as the moves represented gains of more than 3.5% on the session.

The attacks came as the New York Times and Bloomberg reported that the US and Israel have drawn up plans for renewed strikes on Iran after the midterm elections, with targets likely to include Iran's energy infrastructure, nuclear facilities, and missile and drone arsenals. Iran's Islamic Revolutionary Guard Corps threatened US bases in the region in response to Washington escorting ships through what it calls an illegal Hormuz route. Treasury Secretary Scott Bessent used the moment to highlight the effect of "Operation Economic Outcast," noting that Iran's main oil-loading terminal at Kharg Island now has "no crude tankers in sight." Kpler data showed Iran's floating crude storage collapsed to 866,000 barrels by mid-October, down from nearly 150 million barrels before a US naval blockade began in April. Iran has loaded no crude or condensate cargo since August 25, and the National Iranian Oil Company has cut production to below 2 million barrels per day.

Against that supply backdrop, QatarEnergy signed a long-term agreement to buy 4 million tons per year of liquefied natural gas from Cheniere Energy's two US projects, running from the early 2030s through 2054. The deal, Qatar's first US LNG offtake agreement, reflects the kingdom's effort to secure supply outside the Gulf as the Iran war throttles its own regional production options.

The oil surge compounded a broad risk-off move across global markets. US equity futures fell sharply, weighed further by fading enthusiasm for AI spending after results from Meta and Tesla disappointed investors. India's Sensex dropped 460 points, or 0.62%, to 73,249 and the Nifty50 fell 124 points to 22,688, marking a third consecutive session of losses, while the Indian rupee depreciated 44 paise against the dollar to 94.82. Safe-haven assets rallied, with Treasuries, the yen, and the Swiss franc all gaining. France's 10-year bond risk premium over Germany widened as much as 18 basis points to 177 basis points, the widest gap since 2011.