Explosions Reported in Saudi Arabia

Reports from Iranian state-affiliated news agencies Fars and Tasnim said explosions were heard in Saudi Arabia early Friday. Fars claimed a drone struck logistics warehouses used by the U.S. Army, while Tasnim separately reported explosions in the kingdom without providing additional details. As of now, there has been no confirmation from Saudi officials, the U.S. military, or other independent sources regarding the reported attack or any resulting damage.

If confirmed, the incident would mark another escalation in the regional conflict, highlighting the continued vulnerability of U.S. military logistics and infrastructure across the Middle East. Market participants will likely be watching closely for official confirmation and any signs of retaliation, as further escalation could have implications for oil prices, regional security, and broader risk sentiment.

President Trump has made several recent comments about holding Iran financially responsible for damage caused during the conflict. His main points include:

• Iran will pay for the damage. Trump said “all damages will be paid for by Iranian money,” referring to damage to ships and other assets resulting from attacks linked to Iran.
• Use of frozen Iranian assets. He has suggested that frozen Iranian funds could be used to pay for repairs to damaged commercial vessels and other losses stemming from the conflict.
• Broader accountability. Trump has repeatedly warned that Iran would face major military punishment and be held responsible not only for direct attacks, but also for actions carried out by Iranian-backed proxy groups such as the Houthis.

If confirmed, it also is indicative of the fear that there is limited protection of targets.

Crude oil is not running higher but comming off the highs which suggests the market is not all that concerned. The price is currently at $89.47. The low for the day is $88.74. The high is at $93.83. The price is also trading above and below the 100 day MA at $89.90.