Brent Surpasses US$110; Deadly Attack in Saudi Arabia Sparks Supply Concerns!

Brent Surpasses US$110; Deadly Attack in Saudi Arabia Sparks Supply Concerns! Brent Surpasses US$110; Deadly Attack in Saudi Arabia Sparks Supply Concerns! Global oil prices strengthened again during trading on Thursday (October 22, 2026), driven by growing concerns over energy supply disruptions following a drone attack targeting oil facilities in Saudi Arabia. Brent crude for December delivery rose 1.2% to US$110.08 per barrel as of 07:02 WIB (Western Indonesian Time), while West Texas Intermediate (WTI) climbed 1% to US$98.12 per barrel. This uptick follows an attack on Saudi Aramco’s Shaybah oil field, which left two people dead and two others injured. Although operations at the oil field were reportedly unaffected, the incident has reignited concerns regarding the security of energy infrastructure in the Middle East. The United States has also ordered some embassy personnel and their families to leave Saudi Arabia as a precautionary measure against escalating security threats.

Geopolitical tensions continue to loom over the oil market, with Iran intensifying attacks on vessels transiting the Strait of Hormuz, while the Houthi group in Yemen persists in threatening strategic Saudi Arabian facilities. Since the beginning of the year, Brent prices have surged by approximately 80%, fueled by the US-Iran conflict, which has disrupted energy distribution from the Persian Gulf region. Nevertheless, Middle Eastern crude oil exports have begun to recover, nearing pre-war levels—notably with Kuwait increasing its shipment activity. Even so, the transport of refined products, such as diesel and jet fuel, remains constrained by a shortage of tankers and heightened security risks. Consequently, prices for refined energy products remain high, even as crude oil supplies gradually recover.

Meanwhile, the market remains shadowed by the prospect of escalating military tensions, following reports of potential follow-up strikes by the US and Israel against Iran, anticipated to occur after the US midterm elections this coming November. Meanwhile, U.S. energy inventory data shows that crude oil stocks fell by more than 3 million barrels, while inventories of distillate products rose by approximately 1.7 million barrels, presenting a mixed picture regarding the balance of energy supplies. Market participants are now closely monitoring developments in U.S.-Iran diplomacy, security in the Strait of Hormuz, and the ability of oil-producing nations to maintain their exports. Should tensions escalate once again, oil prices could potentially continue to climb. Conversely, a normalization of shipments and progress in diplomatic efforts could limit further price increases.