$120 oil risk: US pulls embassy staff from Saudi

US pulled non-emergency staff from Saudi Arabia after Houthi drone attacks. For India: Brent crude near $120, and 22 UP pilgrims stranded in Saudi today.

Updated: October 24, 2026, 11:30 IST

Quick Read

  • The State Department ordered “non-emergency” US government staff and families to leave Saudi Arabia (announced Oct 21–22). Spokesman Tommy Pigott stressed it was “Saudi Arabia only”, rejecting reports of similar orders for other Gulf embassies.
  • Trigger: a Houthi drone aimed at the Shaybah oilfield was intercepted — falling debris killed two people (a Filipino and a Nepali) and injured two, per Saudi Arabia’s energy ministry. An attack on Dammam’s airport killed one and injured eight.
  • For India: Brent settled Friday at $116.72, up 6% on the week, after touching $120 — a 14-year high, per our Oct 23 report. And 22 pilgrims from a Mirzapur village in UP are stranded in Saudi Arabia.

Washington is pulling people out of Saudi Arabia. The State Department has ordered non-emergency US government employees and their families to leave the kingdom, as Houthi attacks on Saudi oilfields and airports pile up.

The announcement came with a correction. Spokesman Tommy Pigott wrote on X that the ordered departure was for “non-emergency U.S. government employees and their family members in Saudi Arabia only” — reports of similar orders for the UAE, Qatar, Jordan and Bahrain were “inaccurate”. The reason, he said: “Iranian-supported 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.” (ET, Oct 24.)

The attacks behind the order

The sharpest incident this week: a Houthi drone aimed at the Shaybah oilfield near the UAE border. Saudi defences intercepted it, but the falling debris killed two people — a Filipino and a Nepali — and injured two others, the Saudi energy ministry said, per Gulf News.

Wednesday evening brought an attack on King Fahd International Airport in Dammam — one resident killed, eight injured, per Saudi civil aviation. The Indian Embassy in Riyadh said one Indian national was among the dead and two Indians were injured. India condemned the attacks on Oct 22, saying it stands “in solidarity with the people and the Government of the Kingdom of Saudi Arabia”.

The Saudi-led coalition said it intercepted six drones on Wednesday alone, including over Medina. The air disruption is already hitting Indians: Indian airlines have suspended Saudi services — here’s the refund and rebooking picture.

Trump’s warning

At a Florida rally on Friday, Trump warned Tehran the US could launch “another little Epic Fury” if it doesn’t make a deal: “We may do another little Epic Fury, or they’ll agree… If they’re smart, they’ll just say, ‘Let’s get down to business.’ But, you know, I doubt they’ll do that because perhaps they’re not smart.” (ET, Oct 24.)

Axios reported an Oct 23 US intel memo to Secretary of State Marco Rubio saying Iran has “substantially increased” efforts to target American diplomats, with plots at “advanced stages” — and warning the Houthis could strike beyond Saudi Arabia. The New York Times has reported US-Israel planning for a possible post-midterms Iran strike. (Trump blocked an Israeli strike plan earlier this month — our Oct 22 report on what it meant for India’s oil.)

Also read

What it means for India’s oil bill

Brent crude settled Friday at $116.72 a barrel — up $3.55 on the day, 6% on the week, the highest close since April 29, per Reuters. It touched $120 earlier in the week — a 14-year high, as we reported on Oct 23. WTI closed at $103.27.

India imports over 85% of its oil, and pump prices haven’t moved — yet. The government and oil PSUs are absorbing the shock: an estimated 1.7% of GDP, per Business Today (Oct 24), with India’s crude import bill up 46% in September. Axis Bank Research said fiscal buffers can hold the slippage to 20–30 basis points of GDP in FY27 — but if prices stay high, consumers start paying. Your fuel bill is being shielded, not spared.

The 22 pilgrims from Mirzapur

The human face of the disruption is in Bani village, Mirzapur district, UP. On Friday afternoon the village held an emergency meeting — the agenda: how to get 22 of their own home from Mecca and Medina. The group, including three elderly couples, was meant to fly back on Thursday, Oct 22. The flights were suspended, and they’re stuck.

Moharram Ali, a 45-year-old farmer, told the Indian Express his parents — Sohrab Ali, 70, and Badrun Nisha, 65 — keep calling to ask when they can come home. “We have no answers,” he said, “so we keep reassuring them that flights will resume soon.” The MEA says about 3,000 stranded Umrah pilgrims were flown home over the past week; MP Asaduddin Owaisi claims 4,000 remain — unconfirmed.

FAQ

  • Why did the US order staff out of Saudi Arabia?
    Washington ordered non-emergency staff and families to depart, citing escalating Houthi attacks on Saudi civilian infrastructure — airports and oilfields — with civilian casualties. Saudi Arabia only.
  • How does this affect India’s fuel prices?
    India’s crude import bill jumped 46% in September. Pump prices are shielded for now — the government and oil PSUs are absorbing an estimated 1.7% of GDP — but analysts say consumers will pay more if crude stays high.
  • What about Indians stranded in Saudi Arabia?
    About 3,000 stranded Umrah pilgrims have been flown home in the past week, per the MEA. 22 pilgrims from a Mirzapur village in UP are still stuck in Mecca and Medina after their Oct 22 flights were suspended.

Of the Indian carriers, Akasa’s Saudi suspension runs the longest — till October 27. Air India, Air India Express and IndiGo are suspended till October 24, with Saudia and Flynas named as alternatives.

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