Crude Oil Prices Rise as US Orders Diplomats to Leave Saudi Arabia Amid Escalating Tensions | October 22, 2026

Crude oil prices rose on Thursday, October 22, 2026, as escalating attacks in Saudi Arabia prompted the United States to order some diplomats and family members to leave the Kingdom, as per news reports. Brent crude futures gained US$1.29, or 1.2%, to US$110.11 a barrel, while US West Texas Intermediate (WTI) crude rose 97 cents, or 1%, to US$98.12. 

US Diplomatic Withdrawal Raises Supply Concerns 

The US State Department plans to withdraw family members from several additional American missions across the region, according to US officials cited by Reuters. The move followed fresh attacks by Yemen's Iran-aligned Houthis on Saudi targets. 

On Wednesday, an attack at a civilian airport in Dammam killed at least one person and injured eight others. A separate drone attack on a Saudi oil field killed two people, adding to concerns over the security of regional energy infrastructure. 

Shipping Attacks Threaten Gulf Oil Supplies 

Shipping security has also come under pressure. Data from Kpler showed at least 18 attacks on vessels over the preceding two weeks. LSEG analysts reported that Iran was targeting tankers beyond the Strait of Hormuz, extending risks into the Gulf of Oman. 

These attacks threaten crude oil loadings and ship-to-ship transfers supporting regional exports. Disruptions to shipping routes could affect the movement of oil from the Gulf, a major source of global supplies. 

Iran-US Tensions Remain Elevated 

Iranian Foreign Minister Abbas Araqchi told the Financial Times that Tehran was prepared to defend itself. President Masoud Pezeshkian also said the United States could not expect dialogue while maintaining a blockade and issuing threats. 

Meanwhile, Iranian media reported explosions in Sirik in southern Iran on Wednesday, although the cause and origin remained unknown. 

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US Crude Inventories Fall 

US crude oil inventories declined by 3.06 million barrels to 412.5 million barrels last week, according to the Energy Information Administration (EIA). The fall exceeded expectations for a reduction of 820,000 barrels. 

Distillate stocks, including diesel and heating oil, increased by 1.68 million barrels to 104.3 million barrels, against expectations for a decline of 1.16 million barrels. 

The US Department of Energy also announced plans to offer loans of nearly one-third of the country's 1-million-barrel emergency heating oil reserve to help contain prices amid diesel shortages linked to the wars in Iran and Ukraine. 

Conclusion 

Oil prices advanced amid escalating Middle East tensions, attacks on shipping and a larger-than-expected decline in US crude inventories. Developments affecting Gulf oil infrastructure, tanker movements and fuel supplies remain central to the market outlook. 

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