Drone debris kills two at Saudi Shaybah oil field; US orders embassy staff out; Brent near US$110

Attacks on Saudi Arabia's energy sites and airports continued into this week. Ada Derana, carrying an AFP report on 22 October, said Saudi Arabia's energy ministry reported that falling debris from an intercepted drone aimed at the Shaybah oil field killed two people and injured two others. The ministry said the dead were "a Filipino and a Nepali". Shaybah, run by state company Aramco, lies near the UAE border. The ministry did not say who launched the drone, but a separate Ada Derana report described it as a Houthi attack.

The same report said:

• The Saudi-led coalition in Yemen reported intercepting six drones on Wednesday, 21 October.
• One person was killed and eight wounded in an attack on Dammam airport in eastern Saudi Arabia, according to aviation officials.
• The US State Department ordered non-essential embassy staff and their families to leave Saudi Arabia. Spokesman Tommy Pigott said the Houthis "have increasingly engaged in hostilities against Saudi Arabia, including attacks on civilian airports and other critical infrastructure resulting in civilian casualties and severe travel disruptions."
• Late on Wednesday, Iranian state media reported explosions in Hormozgan province, which overlooks the Strait of Hormuz.

Ada Derana said Saudi Arabia has faced near-daily Houthi attacks this month. They include a strike on Riyadh's international airport, the kingdom's deadliest in years. Our earlier post covered that attack and SriLankan Airlines' suspension of Riyadh flights. We covered the earlier missile strike near Aramco's Dhahran headquarters here.

Oil prices moved up. Trading Economics said Brent crude "climbed toward $110 per barrel on Thursday, recouping losses from earlier this week" after the Shaybah attack. Its data showed Brent at US$110.12 a barrel on 22 October, up 1.20% on the previous day and 68.67% higher than a year ago.

Trading Economics also gave reasons why prices may not rise much further. It said gains "may be constrained by rising crude shipments from the Middle East, with export flows nearing prewar levels". It also said Russia is expected to deliver its first diesel shipment to the US on Thursday.

Saudi Arabia and the wider Gulf matter to Sri Lankan trade in several ways:

• Oil prices. Brent near US$110 keeps pressure on fuel import bills, bunker costs and the fuel surcharges that carriers and airlines add to freight.
• Air cargo and travel. Attacks on Riyadh and Dammam airports, and the US order for staff to leave, show that disruption to Saudi airports may last. Exporters who send perishables, garments or samples by air to Saudi Arabia, or through Gulf hubs, may face cancellations, reroutes or tighter space.
• Shipping risk. Iranian reports of explosions near Hormuz come as tanker attacks continue. Any new incident there can push freight, insurance and oil prices up again within hours.

1. Check air bookings to Saudi Arabia. If you ship to Riyadh, Dammam or Jeddah, confirm with your airline or forwarder that flights are running, and ask about alternative routings through other hubs.
2. Review perishable shipments. For time-sensitive cargo, agree in advance what happens if a flight is cancelled: who pays for storage, cold chain and rebooking.
3. Keep buyers informed. Tell Gulf customers early about any possible delay, and record the reason in writing.
4. Watch fuel-linked surcharges. Ask carriers when their next bunker or fuel surcharge review is due, and how it is calculated.
5. Plan currency needs. If you pay suppliers in dollars, keep an eye on the rupee and talk to your bank about timing. This is general information, not financial advice.
6. Compare notes. Share what you are seeing on Gulf routes on the community board.

The situation is changing quickly. Figures here are as reported on 21 and 22 October and may change.