HighLights
  1. Houthi rebels attacked Saudi Aramco's Dhahran headquarters.
  2. Extensive damage reported, including CEO's office floors.
  3. Raises concerns for India's energy security and oil prices.

Saudi Arabia's state-owned oil giant Saudi Aramco has suffered extensive damage to its headquarters in Dhahran following an attack attributed to Yemen's Houthi rebels, raising fresh concerns over regional security and potential disruptions to global energy markets. The incident took place on Tuesday, as hostilities between Saudi Arabia and the Iran-aligned group intensified. The fresh development pose a new threat to India's energy security as the oil facility also supply oil to New Delhi.

According to sources of Reuters, operations at the complex in eastern Saudi Arabia have continued normally, but some employees have ‌been asked to work from home. A fourth person said some functions had been shifted to global offices, adding that the fire was still burning into the early hours of Wednesday.

The facility hosts an operations centre which helps the world's largest oil company oversee onshore and offshore oil rigs, refineries, export terminals and thousands of kilometres of pipeline. Saudi Arabia's energy ministry said in a statement that Tuesday night's attack, which came as fighting between Yemen's Iran-allied Houthis and the kingdom intensified, had caused a limited fire. Two of the sources said a fire started on the ninth floor of the south wing of the office block, and spread between the sixth and 10th floors.

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Another source added that the top three floors of building, where the office of Aramco CEO Amin Nasser is located, were severely damaged, with part of the ceiling caved in and windows and doors blown out.

What does the attack mean for India?

The developments could create fresh challenges for India, which relies heavily on imported crude oil to meet its energy requirements. Any prolonged disruption to Saudi oil production, export infrastructure or shipping routes could push up international crude prices and increase transportation and insurance costs.

ALSO READ: WATCH: Massive Smoke, Fire Seen Near Aramco Facility In Riyadh Amid Escalating Houthi Attacks

India’s exposure is significant because higher oil prices can increase the country’s import bill, put pressure on the rupee and add to inflationary pressures. However, the damage to Aramco’s headquarters does not, by itself, establish that Saudi oil production or exports have been disrupted. The immediate impact on Indian supplies remains uncertain.

What are the options India has?

India has several options to cushion potential supply shocks, including purchases from Russia and other oil-producing countries, as well as the use of existing inventories. Nevertheless, a wider escalation affecting multiple energy facilities or shipping corridors could make replacement supplies more expensive.

Moments ago, the Ministry of External Affairs condmened the attack on Saudi Arabia’s Aramco and called for them to cease immediately. It said that the attacks "are totally unacceptable".

"We stand in solidarity with the people and government of Saudi Arabia in defence of their sovereignty and hope for a return to peace and normalcy in the region. Our embassy in Saudi Arabia is in regular touch with the Indian community and has issued advisories for their welfare. Flight schedules have been disrupted following attacks on airports, impacting Indian carriers, particularly flights to and from Riyadh, Dammam, Medina and Jeddah," MEA spokesperson Randhir Jaiswal said in a weekly press briefing in New Delhi.

(With inputs from Reuters)

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