Oil Sector: Saudi Aramco HQ Hit by Debris as UAE Rescues Ship Crews

Saudi Arabia’s state-owned oil company, Aramco, reported minor structural damage to its headquarters in Riyadh following a series of missile interceptions early Sunday. The incident underscores the direct financial exposure of global energy giants to regional conflict, even when no casualties are reported.

Witnesses in the King Abdullah Financial District described a loud explosion and visible damage across multiple floors of the Aramco building. Some levels showed heavy interior damage, while others had shattered exterior glass. The Saudi-led coalition announced it intercepted two ballistic missiles and two cruise missiles targeting Riyadh and other regions. The group attributed the ballistic missiles to Yemen’s Houthi rebels.

The Saudi energy ministry stated that falling shrapnel caused the minor damage to the Aramco facility. The ministry confirmed there were no injuries. Neither the Saudi Center for International Communication nor Aramco immediately responded to requests for comment regarding the extent of operational disruptions.

The attacks followed Saudi airstrikes on Saturday near Sanaa, the Houthi-held capital of Yemen. Houthi officials said those strikes killed at least 27 people. The coalition also confirmed it intercepted a ballistic missile overnight targeting Saudi Arabia’s southern border region, an area frequently targeted by Houthi forces.

Risks to commercial shipping in the region remain elevated. The UAE National Guard reported rescuing 22 crew members after a fire broke out aboard a cargo ship in the Sea of Oman. All rescued personnel were of Arab nationalities and were in stable condition after receiving first aid. The National Guard did not identify the vessel or specify the cause of the fire.

The UK Maritime Trade Operations, a British military organization, reported that a tanker caught fire on Saturday approximately 8 nautical miles northwest of Khasab, Oman. The crew was evacuated. It remains unclear if this is the same vessel referenced by the UAE. The incident occurred as the U.S. Navy maintained a blockade in the Strait of Hormuz, a critical waterway for global oil shipments.

On Saturday, U.S. forces disabled a St. Kitts-flagged cargo ship in the Gulf of Oman. The U.S. military said the vessel attempted to breach the naval blockade of Iran. Separately, the Iranian military announced late Saturday that two tankers struck mines in the Hormuz area and caught fire. The military did not identify the flags or destinations of those vessels.

In Israel, President Isaac Herzog designated Gadi Eisenkot to form the next government. Eisenkot is Benjamin Netanyahu’s main political rival and the country’s former military chief. The designation comes after the Oct. 27 election, which resulted in no single party holding a majority. Eisenkot has six weeks to negotiate a coalition. The task is complex given the political division in the country following the Oct. 7, 2023, attack by Hamas and the subsequent three years of war.

Herzog’s decision places pressure on Netanyahu, who lost his parliamentary majority. Eisenkot must now secure enough parliamentary support to form a working government. The process begins with official consultations on Sunday.