Oil rises after US orders staff to leave Saudi Arabia

Oil prices rose in Asian trading on Thursday, October 22, with Brent crude moving above $110 a barrel. The rise followed a U.S. order for nonemergency government staff to leave Saudi Arabia after a series of deadly Houthi attacks in the kingdom. Traders also weighed a report from The Wall Street Journal that the U.S. military has been preparing options for strikes on Iran, even though President Trump has said the U.S. won't attack before the November 3 midterm elections.morningstar.com+1

Washington draws down in Riyadh

On Wednesday, the State Department ordered nonemergency employees and their families to leave the embassy in Riyadh and its consulates. A travel alert warned that the hostilities "have the potential to escalate rapidly beyond that immediate area". Spokesperson Tommy Pigott said the order covers Saudi Arabia only, pushing back on reports that it extended to other Gulf states.apnews.com+1

The Houthis struck several targets on Wednesday. One person was killed and eight were wounded at the civilian airport in Dammam, and two people died in a drone attack on a Saudi oil field. Saudi officials said the drone was aimed at Aramco's Shaybah oilfield. Earlier this month, a strike on Riyadh's King Khalid International Airport killed 12 people and injured more than 300.cbsnews.com+2

Iran sent its own warnings. Foreign Minister Abbas Araqchi said Tehran was fully prepared to defend itself, and Kpler data showed at least 18 attacks on shipping over the past two weeks. The New York Times separately reported that U.S. and Israeli militaries had drawn up plans for renewed attacks on Iran after the midterms.galvnews.com+1

Supply data tightens further

U.S. crude stocks fell by 3.06 million barrels to 412.5 million barrels last week, the Energy Information Administration said. Analysts had expected a draw of 820,000 barrels. Distillate stockpiles rose unexpectedly, and the Energy Department offered to loan up to nearly a third of the emergency heating oil reserve to ease diesel shortages.economymiddleeast.com

Asian stocks slide

Asian equities fell sharply. South Korea's Kospi and Hong Kong's Hang Seng Index led the losses, while Japan's Nikkei 225 and China's Shanghai Composite Index also dropped. Futures tied to the Nasdaq Composite and S&P 500 ↗ 2.37% declined as well, as investors questioned how Meta ↗ 5.12% plans to fund its AI spending.morningstar.com

Ipek Ozkardeskaya, an analyst at Swissquote, said the mood suggests "that even strong earnings may no longer help investors overlook troubles elsewhere".morningstar.com