International crude oil prices have increased significantly, with Brent crude reaching $110.11 per barrel by 12:34 GMT on Thursday, October 22, 2026. This surge follows heightened tensions in the Middle East, including additional Houthi attacks in Saudi Arabia and the United States’ directive for some diplomatic staff and their dependents to leave its Saudi Arabian offices.
Brent crude prices rose by $1.29, or 1.2 percent, to $110.11 per barrel. Similarly, US West Texas Intermediate (WTI) crude oil prices increased by 97 cents, or 1 percent, to $98.12 per barrel. On Wednesday, October 21, Brent prices remained largely stable, while WTI had decreased by 67 cents.
The US State Department is reportedly preparing to withdraw family members of staff from other diplomatic missions in the Middle East, according to Reuters.
Recent attacks in Saudi Arabia have heightened security concerns. On October 21, 2026, two individuals died and two others were injured when debris from a drone, targeted at Aramco’s Shaybah oil field in the southeast of the country and shot down by Saudi air defence systems, fell. One Nepali and one Filipino citizen were among the deceased, while the injured included one Pakistani and one Indian citizen.
Additionally, an attack on King Fahd International Airport in Dammam on October 21, 2026, resulted in one death and eight injuries.
The ongoing conflict in the Middle East raises concerns about potential disruptions to oil production, transportation, and supply. This could lead to further volatility in international crude oil prices. The US Department of Energy has stated its intention to work with international refineries to address the global energy crisis and rising diesel prices.
Nepal, which is entirely dependent on imports to meet its fuel demand, purchases refined fuel exclusively from the Indian Oil Corporation (IOC). Nepal Oil Corporation (NOC) adjusts petroleum product prices every 15 days based on rates received from IOC.
Tensions in the Middle East, coupled with declining crude oil inventories in the US, have contributed to the rise in international crude oil prices. On October 8, 2026, increased Middle East tensions and a hurricane threat off the US coast caused a sharp rise in oil prices, with Brent crude increasing by 5% to $105.3 per barrel.
The Houthi rebels, an Iran-backed insurgent group in Yemen, announced in July 2026 their intention to intensify attacks on Saudi Arabia, targeting its ports and infrastructure. On October 15, 2026, the United Nations Security Council strongly condemned these attacks.
The Saudi Civil Aviation Authority (GACA) has stated that a full assessment of the damage from the Dammam airport attack is underway, and further information will be provided.
The full details and exact extent of the damage from the latest Houthi attacks in Saudi Arabia remain unclear. It is also not yet clear which other diplomatic missions in the Middle East the US State Department plans to withdraw family members of staff from. Detailed information on how the ongoing conflict might disrupt oil production, transportation, and supply is also not fully available.
