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Saudi Aramco has instructed employees to leave its headquarters in Dhahran and work remotely as tensions escalate between Saudi Arabia and Yemen’s Houthi rebels, six people familiar with the matter told Reuters on Thursday.
The move comes amid growing hostilities between Saudi Arabia, the world’s largest crude oil exporter, and the Iran-backed Houthis. It is the first time Aramco has ordered employees to leave its headquarters since the Iran war began. The precise reason for the instruction remains unclear.
Clashes have intensified between the Houthis and the Saudi-led coalition backing Yemen’s internationally recognised government after the rebels advanced towards the Bab al-Mandab Strait, a strategic waterway at the entrance to the Red Sea that is vital for global trade and energy shipments.
The evacuation follows a series of Houthi attacks targeting Saudi oil facilities and airports. Earlier this month, an attack caused extensive damage to Aramco’s Dhahran headquarters, with fires spreading across several floors of the building.
Houthis Claim Attacks on Aramco, Saudi Facilities
Houthi military spokesperson Yahya Saree said in a televised statement that the group had targeted an Aramco facility in Yanbu, on the Red Sea coast, and Saudi Arabia’s Defence Ministry in Riyadh.
Saudi authorities have not confirmed the reported attacks.
The Saudi-led coalition said on Thursday that it had intercepted drones over Riyadh and the holy city of Medina. Saudi Arabia has also launched retaliatory strikes against Houthi missile-launch sites and reported intercepting several ballistic missiles fired by the group.
Saree claimed that Saudi attacks in Yemen had killed or injured 562 people since mid-July, when the Houthis imposed a naval blockade against Saudi Arabia. The Saudi-led coalition had warned of tougher measures in response.
Two Killed in Airport Attack
A Saudi national and an Indian national were killed, while eight others were injured, in a Houthi attack on King Fahd International Airport in Dammam, near Dhahran, on Wednesday evening.
Saudi Arabia’s civil aviation authority said on Thursday that airport operations had resumed and air traffic had returned to normal.
The Houthis have also targeted several Saudi airports this month, including Riyadh International Airport and Abha Airport in the south. The group has warned airlines against using Saudi airspace.
Oil Prices Rise, Saudi Stocks Fall
News of the evacuation sent Saudi Arabia’s benchmark stock index down 2.5% on Thursday, according to data from the London Stock Exchange Group.
International crude oil prices also rose. Brent crude gained $3.06, or 2.81%, to reach $111.88 a barrel. Prices had climbed to $112.55 earlier in the session, their highest level since May 18.
The escalating conflict has raised concerns about potential disruptions to oil supplies from the Middle East, one of the world’s most important energy-exporting regions. Continued Houthi attacks on Saudi oil infrastructure and airports have added to uncertainty in international energy markets.