Saudi Arabia intercepted drones and missiles aimed at Riyadh and other cities on Sunday, a development that helped drive global oil prices to their highest level in six months. The Saudi-led Coalition to Restore Legitimacy in Yemen reported the interceptions as tensions in the region escalated following remarks by U.S. President Donald Trump regarding potential strikes on Iran.
Turki Al-Maliki, the coalition's spokesperson, told the Saudi Press Agency that two drones and one ballistic missile were destroyed while heading toward Riyadh. Al-Maliki stated that the coalition also intercepted ten ballistic missiles targeted at the southern region of Saudi Arabia and one cruise missile aimed at Khamis Mushait. In a Telegram post, the Yemen-based Houthis claimed they carried out seven military operations using ballistic missiles and drones.
The Houthis identified their targets as Riyadh's King Khalid International Airport, facilities belonging to oil major Saudi Aramco in Yanbu, and other energy installations across the country. King Khalid International Airport announced it was resuming operations on Sunday, with Terminal 1 handling domestic flights and Terminal 2 managing overseas routes. The airport had suspended operations on October 10 after a strike that killed at least 13 people and injured approximately 300 others, marking the deadliest attack on Saudi Arabia in over a decade. Saudi Aramco did not respond to requests for comment from CNBC.
Market analysts linked the surge in crude prices to fears of broader regional conflict. Amrita Sen, founder of Energy Aspects, told CNBC's Squawk Box Europe on Friday that clients are increasingly asking when the U.S. and Israel will strike Iran, rather than if it will happen. Sen noted that her firm views an attack as more likely after the November 3 midterm elections than before them.
U.S. officials told The New York Times that the United States and Israel have plans for fresh strikes on Iran following the midterms. Trump said Wednesday that the U.S. was not negotiating with Iran and that an action would occur "fairly soon." Last week, the U.S. government ordered non-emergency employees and their families to leave Saudi Arabia amid the ongoing Houthi attacks.
Brent crude futures rose 3.1% on Friday to settle at $116.72 per barrel, the highest international benchmark settlement since April 29. U.S. West Texas Intermediate crude increased 3.8% to settle at $103.27 per barrel. For the week, Brent gained 6.2%, marking its third consecutive weekly increase, while WTI advanced 2.3%.