Houthi missiles reportedly hit the decision-making center of Saudi Aramco, company headquarters urgently evacuated, Brent crude rises over 4% intraday

The ongoing attacks by Yemen's Houthi forces on Saudi Arabia's core oil infrastructure are pushing Middle Eastern energy security risks to new heights. Saudi Aramco has ordered the evacuation of all staff from its headquarters, international crude oil prices surged intraday on Thursday, and market concerns over potential supply disruptions in the Gulf region have soared.

Last week, a Houthi ballistic missile struck the area of Dammam where Saudi Aramco's headquarters are located. According to media reports on Thursday, the 22nd local time, Saudi Aramco has required the remaining employees at its headquarters in Dhahran to evacuate and switch to indefinite remote work. Insiders revealed that the "top three floors of one headquarters building have been destroyed."

The Saudi side has not yet officially confirmed the above attack. Citing a video statement on the 22nd by a spokesperson of Yemen's Houthi forces, CCTV News reported that the Houthis had carried out four military operations against Saudi Arabia in the past 48 hours, using several ballistic missiles and drones to strike the Saudi Ministry of Defense building in Riyadh, King Fahd International Airport in Dammam, Saudi Aramco facilities in Yanbu, and Abha International Airport.

Driven by news of attacks on Saudi energy facilities, December Brent crude oil futures jumped up more than 4% intraday on Thursday, closing up about 4%, the biggest daily gain since October 8, at $113.17 per barrel, the highest closing price since May 4. U.S. WTI crude oil surpassed the $100 mark intraday, climbing more than 3%. The rapid repricing of energy security risk premiums is reshaping investors' overall assessment of the Middle East situation.

Details of Headquarters Damage: Three Floors Destroyed, Evacuation Order Unspecified

Dhahran is the administrative center of Saudi Arabia's Eastern Province and the core hub of the country's oil industry, where Saudi Aramco's headquarters are located. According to AFP, citing two anonymous employees, a building in the headquarters compound suffered a direct hit, with "the top three floors gone."

Coalition spokesman Turki al-Maliki announced on October 13 that a Houthi ballistic missile heading toward Dammam was intercepted and destroyed. According to Reuters at the time, a person familiar with the matter revealed that Aramco's headquarters had been hit, but it was unclear whether the building was directly struck or damaged by intercept debris.

So far, Saudi officials have disclosed little about specific losses caused by the attack. A source told AFP that an evacuation order had been issued, "but no specific reason was given." There is currently no indication that residential areas near headquarters have been evacuated as well.

Operational Impact: Collateral Risks for Production and Export Terminals

Although Saudi Aramco has not made any official statement regarding damage to its production facilities, the evacuation of headquarters alone has sent a strong signal to the market. As the administrative and dispatch center of Saudi Arabia's oil industry, Dhahran's operational continuity directly affects the Kingdom's ability to coordinate oil production.

Reports also indicate that the Houthi forces claimed responsibility for strikes on Yanbu, a key Saudi oil export terminal, which reportedly caused fires at Aramco facilities. Saudi authorities have not confirmed this claim, and the actual operational status of Yanbu's export terminal remains unclear.

Meanwhile, since the beginning of the month, Houthi attacks on Saudi airports have resulted in 22 deaths, with multiple airports, including King Fahd International Airport in Dammam, continuing to be targeted, further exacerbating uncertainty for regional logistics and personnel flows.

Oil Prices and Market Reaction: Risk Premiums Quickly Repriced

International oil prices reacted rapidly and significantly to these developments. Brent crude oil rose as high as $113.5 intraday, up 4.3% on the day; U.S. December WTI crude futures closed up 2.39% at $99.47 per barrel, reaching as high as $100.17 intraday.

Media reports noted that Brent crude has risen more than 80% this year, mainly driven by sustained supply disruption risks in the Persian Gulf following the outbreak of war between the U.S. and Iran.

Rebecca Babin, senior energy trader at CIBC Private Wealth Group, stated: "Ongoing military actions and renewed escalation risks after the midterm elections are providing a floor for oil prices. It's hard for the market to sustain a rally, but there also isn't strong conviction for a sell-off."

At a broader market level, the risk-off sentiment from geopolitics combined with AI-linked selloffs in tech stocks, sending U.S. stocks lower overall.

On Thursday, the S&P 500 index closed down 1.43%, the Nasdaq 100 index fell 2.90%, and the energy sector relatively outperformed, closing only slightly lower by 0.74%. The U.S. dollar index fell, safe-haven currencies like the yen and Swiss franc strengthened, and U.S. Treasury yields fell sharply, with the 10-year yield dropping below the 5% mark.

Regional Security Situation: Houthi Offensive Escalates, Iran Threatens to Expand Conflict

The attack on Aramco headquarters occurred against a backdrop of intense Houthi strikes on Saudi infrastructure over the past two weeks. In addition to Dhahran and Yanbu, the Houthis also claimed responsibility for attacking the Ministry of Defense in Riyadh, and multiple airports across Saudi Arabia have continued to suffer attacks.

Meanwhile, the Islamic Revolutionary Guard Corps Navy of Iran announced that it struck four oil tankers transferring cargo in the northern Persian Gulf, while three other vessels hit mines west of the Strait of Hormuz. Iran also warned that if the U.S. continues to encourage ships to transit the Strait of Hormuz, it may attack U.S. military bases and could expand the scope of the conflict.

According to CCTV News citing The New York Times on the 21st, the U.S. and Israeli armed forces have drawn up specific plans to launch military strikes against Iran after the U.S. midterm elections. This report further strengthened market expectations for another surge in Middle East tensions after the elections and continues to support energy market risk premiums.