RIYADH — Saudi Arabia's Tadawul All Share Index dropped 2.8 percent after a drone attack on the Ras Tanura refinery, attributed to Houthi rebels by Saudi officials. Brent crude futures spiked 3.5 percent to $92.40 a barrel, reversing early gains in Gulf energy stocks and triggering a broad equities sell-off.
The move compressed duration risk sharply in U.S. Treasury markets. The two-year yield fell seven basis points to 4.82 percent, while the 10-year dropped five basis points to 4.28 percent — flattening the curve as institutional investors rotated into safe-haven duration. Analysts at JPMorgan Chase said the supply disruption adds upside risk to fourth-quarter inflation data, potentially delaying anticipated rate cuts that markets had begun pricing in. The dollar index climbed 0.3 percent to 105.6.
Commodities across energy and precious metals reflected the geopolitical repricing. Natural gas prices rose alongside crude, while gold climbed 1.1 percent to $2,385 an ounce. The divergence between crude's spike and equity resilience — the S&P 500 rose 0.6 percent and the Nasdaq gained 1.2 percent — indicates U.S. investors are treating the incident as a supply shock rather than a systemic risk event.
Saudi authorities announced heightened security at critical infrastructure and committed to restoring full Ras Tanura capacity. The incident will shape discussions at the Nov. 15 OPEC+ meeting, where production targets during elevated geopolitical tensions will be central.
