Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia and Yemen’s Houthi rebels. The move came amid escalating attacks that have raised concerns over disruptions to global energy supplies, pushing oil prices to a five-month peak.
Brent crude futures settled at $112.96 a barrel early Friday, down slightly by 21 cents or 0.2%, after surging 4% the previous day to their highest level since May 4. West Texas Intermediate (WTI) crude was also down 27 cents, or 0.3%, at $98.12. Despite the minor pullback, Brent is on course for a third consecutive week of gains, while WTI looks set to end a two-week winning streak with a weekly decline.
The evacuation order followed a spike in violence between Saudi-led coalition forces and the Houthis, an Iran-aligned group that has pushed towards Bab el-Mandeb. The strait sits at the southern end of the Red Sea and acts as a chokepoint for global shipping, including oil exports. The Houthis’ advance has stoked fears that the vital maritime route could be threatened, potentially disrupting oil flows from the world’s largest crude exporter.
Clashes have been ongoing since the Houthis expanded their offensive in Yemen, a conflict that has drawn in regional powers. Saudi Arabia, the world’s top crude producer, has faced repeated missile and drone attacks from the Houthis over the past months, but the recent intensity prompted the rare step of evacuating Aramco’s main office on the Gulf coast near Bahrain.
At the same time, Libya reported a shutdown of a critical oil pipeline valve connecting the Hamada and Tahara oilfields to Zawiya port. The head of Libya’s National Oil Corporation told Reuters on Thursday that production at both fields had been reduced. The North African country’s oil infrastructure has been vulnerable to disruptions amid ongoing political instability.
Meanwhile, Russia indicated readiness to resume talks with Ukraine next month, mediated by the United States. President Vladimir Putin hosted US envoy Steve Witkoff in St Petersburg on Wednesday, signaling a potential thaw in negotiations. Ukrainian President Volodymyr Zelenskiy said he hopes talks will take place early in November, marking the first formal negotiations since February.
Russia ranked as the world’s third-largest crude producer in 2025, behind the US and Saudi Arabia, according to US energy data. Western sanctions aimed at restricting Russian energy exports following its 2022 invasion of Ukraine have contributed to upward pressure on oil prices globally.
The combination of geopolitical tensions in the Middle East, disruptions in Libya, and uncertainty over Russian supply has kept oil markets on edge. The recent surge in Brent prices reflects traders’ concerns that conflict and infrastructure damage could further tighten supply at a time when global demand remains strong.
Saudi Aramco’s evacuation underscores the escalating risks in the region. The company has not provided a timeline for returning to normal operations at its Dhahran headquarters. The lack of clarity adds to market unease as the Houthis continue to challenge Saudi Arabia’s security along a vital stretch of the Red Sea.
Libya’s pipeline shutdown came as a fresh blow to markets already wary of supply constraints. The National Oil Corporation’s statement did not specify the cause of the closure or when production might resume, leaving oil output uncertain in a country that has suffered repeated disruptions due to factional fighting.
Oil traders will be watching closely for developments in Yemen and Libya, while the potential resumption of Russia-Ukraine talks may influence market sentiment. Any agreement that eases sanctions or reduces conflict could alter the supply outlook, but for now, oil remains pressured by multiple sources of instability.
The situation underlines the fragility of supply chains in key producing regions. Saudi Arabia’s evacuation of Aramco’s headquarters is a rare public signal of the intensity of the threat, even as global markets brace for possible further shocks.
According to Joy Online.
