Saudi Arabia’s state-owned oil giant Aramco has instructed employees to evacuate its headquarters in Dhahran, located along the Gulf coast, according to six people familiar with the matter who spoke to Reuters on Thursday. The move comes as hostilities between the world’s largest crude oil exporter and Yemen’s Iran-backed Houthi group continue to escalate.
Fighting has intensified between the Houthis and a Saudi-led coalition supporting Yemen’s internationally recognised government since the group advanced towards Bab el-Mandeb, a strategically important shipping passage at the entrance to the Red Sea.
The evacuation order, which directs staff to leave the building and work remotely, follows a series of Houthi attacks across Saudi Arabia targeting the oil company and the kingdom’s airports. Aramco did not immediately respond to a request for comment. If confirmed, this would be the company’s first such evacuation since the outbreak of the Iran war.
The specific reason behind the evacuation remained unclear.
According to LSEG data, Saudi Arabia’s benchmark stock index, .TASI, fell 2.5% on Thursday following news of the Aramco evacuation. Meanwhile, oil prices climbed to their highest levels since May amid concerns that the escalating Middle East conflict could disrupt crude supplies from the world’s most important oil-exporting region.
Houthis Claim Attack on Aramco Facility in Yanbu
Houthi military spokesperson Yahya Saree said in a televised address that the group had carried out attacks targeting Aramco facilities in Yanbu, a Red Sea port city, as well as Saudi Arabia’s defence ministry in Riyadh. However, Saudi officials have not confirmed the reported strikes.
Meanwhile, the Saudi-led coalition announced on Thursday that it had intercepted drones over Riyadh and Madinah, a city located near Yanbu.
The latest round of clashes between Saudi Arabia and Houthi militias in recent weeks has brought an end to the UN-mediated truce established in 2022, which had largely stopped cross-border attacks. The renewed hostilities have also opened another front in the ongoing US-Israeli war against Iran.
Earlier this month, Houthi strikes reportedly caused significant damage to Aramco’s headquarters, with a fire spreading across multiple floors of the building.
In response to the Houthi attacks, Saudi Arabia has launched a series of strikes against missile launcher positions, pledging to defend its territory. Riyadh has also reported intercepting numerous ballistic missiles fired by the group.
Saree claimed that Saudi strikes on Yemen had killed or injured 562 people since mid-July, when the Houthis imposed a naval blockade on the kingdom. The blockade prompted a warning from the Saudi-led coalition that it would respond “firmly”.
In a separate statement earlier on Thursday, Saree said the group was carrying out a rescue operation for a boat carrying 14 Indian nationals that had come under attack near Jabal Zuqar island, close to the strait. The island is among the territories seized by the Houthis during an advance in September.
Saree accused Saudi Arabia of being responsible for the attack. Saudi authorities did not respond to a request for comment from Reuters.
Houthi Strikes Target Saudi Airports
A Houthi strike on King Fahd International Airport in Dammam, Saudi Arabia’s eastern oil-producing hub near Dhahran, on Wednesday evening claimed the lives of two people, a Saudi national and an Indian citizen, while leaving eight others injured.
Saudi Arabia’s General Authority of Civil Aviation announced on Thursday that airport operations had resumed and air traffic was back to normal.
Earlier this month, the Houthis warned airlines against operating in Saudi airspace amid repeated attacks on the kingdom’s airports, including Riyadh’s international airport and Abha Airport in the south.
Meanwhile, Brent crude futures (LCOc1) rose by $3.06, or 2.81%, to reach $111.88 per barrel by 1104 GMT on Thursday. Prices had climbed to $112.55 per barrel earlier in the session, marking their highest level since May 18.
