IMF warns attacks on Saudi Arabia could hurt global economy after strike on Aramco headquarters

The International Monetary Fund warned on Wednesday that attacks on Saudi Arabia could hurt economies worldwide, after a strike damaged oil giant Aramco’s headquarters.

IMF managing director Kristalina Georgieva highlighted the kingdom’s critical economic role.
“In that sense, such developments carry potentially negative spillovers for everyone, everywhere,” she said at the IMF and World Bank annual meetings in Bangkok.

Saudi Arabia’s energy ministry reported that an administrative building at Aramco’s headquarters in Dhahran was struck on Tuesday evening, resulting in a limited fire. Officials confirmed there were no deaths or injuries.

Yemen’s Iran‑aligned Houthis claimed responsibility for the attack. The group has also launched strikes against Saudi airports amid ongoing conflict with a Saudi‑led coalition.

The building’s top three floors – which included chief executive Amin Nasser’s office – suffered severe damage, according to a source with direct knowledge. Nevertheless, two sources indicated that operations at the complex continue largely uninterrupted; some staff were advised to work remotely, while others shifted to offices overseas.

As for Aramco, the company overseeing its oil rigs, refineries, export terminals and pipelines operates from its headquarters centre. Although the firm did not issue a comment to the reporting agency, market reactions showed immediate stress following the incident.

Oil prices surged on Wednesday, with Brent crude climbing above $106 per barrel. Aramco’s share price declined modestly by 0.5% in early trading.

Air connectivity was further impacted; Lufthansa suspended services to Riyadh through 18 November, per its latest advisory.

To mitigate disruptions, Saudi Arabia plans to enable executives to attend its Future Investment Initiative conference via the virtual platform. The event is scheduled for later this month.

Recovery hinges on maritime resurgence

The IMF had previously cautioned that Saudi Arabia’s economy would contract by 3.3 % in 2026 before turning toward a 7.9 % expansion in 2027.
This forecast was released on Tuesday, shortly before the deadly assault on the Riyadh airport.

Recovering full trajectory relies heavily on the reopening of sea lanes. Saudi Arabia’s economy faced additional pressure from the broader conflict and intermittent shipping interruptions through the Strait of Hormuz.
The IMF projects gradual restoration of maritime traffic from March 2027, with conditions returning to pre‑war levels by October.
The kingdom’s East‑West pipeline, which routes oil to Yanbu along the Red Sea, offers an alternative route and has tempered the severity of economic fallout compared with neighboring states.

Ms Georgieva emphasized that the kingdom’s diversified economy – built on non‑oil enterprises – provided a buffer against the war’s destabilising effects.
She cautioned that lower‑income nations remaining reliant on imported energy bear the greatest burden from surging cost pressures. Consequently, she called on governments globally to support citizens confronting soaring food and energy expenses.

Source link