Global Markets
Saudi stocks drop 1.7% as Brent hits a five-month high on Houthi attack claims
Gulf bourses mostly fell and Brent touched $111.75 after the Houthis said they struck Saudi energy sites and airports, claims Riyadh has not confirmed.
HedgeWeekly News Desk ·
Saudi Arabia's benchmark index closed 1.7% lower at 9,952 on Tuesday, leading most Gulf markets down after Yemen's Houthis said they had attacked Saudi energy, airport and military targets on Monday. The group named an Aramco facility in Yanbu, the Shaybah oilfield and the airports at Riyadh and Abha. Saudi authorities did not immediately confirm the claims, and Reuters said it could not verify them.
Saudi Aramco fell 1.2% and Saudi Arabian Mining Co. lost 4.7%. Qatar's index slipped 0.4% to 8,598, its lowest in more than six years, with Qatar National Bank down 0.7%. Dubai eased 0.3% and Oman 1.1%, while Abu Dhabi bucked the trend with a 0.5% gain and Egypt rose 1.9%.
Brent crude futures climbed as high as $111.75 a barrel, the highest since May, and were up 1.5% at $111.20 by 1120 GMT. The expiring November WTI contract jumped 5.2% to $109.08 after touching $110. Shiptracker Kpler said at least 18 vessels were reportedly attacked in the Gulf over two weeks, and ING analysts wrote that the market is pricing a significant risk premium with no sign yet of it fading.
Why it matters: the conflict is now hitting Gulf capital markets directly, not just the oil price. Saudi Arabia has postponed its flagship investment conference to next year, and Cirium data show more than 45% of departures from Saudi airports cancelled since October 8. For allocators with Gulf or emerging-market exposure, the next markers are whether Riyadh confirms damage at Yanbu or Shaybah, and Egypt's parliament vote, now delayed to October 26, on letting its armed forces support Saudi Arabia if asked. Crude above $110 also adds to the inflation backdrop the Fed faces at its October 28 meeting.