Saudi Arabia issued early warnings in Riyadh on Saturday after reports of two loud blasts in the capital. Reuters later said a large plume of smoke and flames was visible near the city’s main airport, King Khalid International Airport.
Saudi civil defense sent aerial-attack alerts to residents in Riyadh and Al-Kharj before later issuing the all-clear. The cause of the smoke and fire was not immediately established, and Saudi authorities did not promptly respond to CNBC’s request for comment.
The incident matters for financial markets because it comes amid rising regional tension. Iran-backed Houthi forces in Yemen have intensified attacks on Saudi Arabia in recent weeks and launched a rapid ground push around Bab el-Mandeb Strait, seizing Mokha and nearby islands. The strait is a strategically important route for oil shipments.
Last week, U.S. President Donald Trump’s administration approved the potential $24.3 billion sale of nearly 50 F-35 warplanes to Saudi Arabia. The package announced on Thursday includes 48 advanced F-35 jets built by Lockheed Martin, 49 Pratt & Whitney engines and other parts.
At the same time, Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, told MS NOW that consultations mediated by Qatar and Pakistan are continuing and that Iran’s negotiation terms have been passed to the United States. According to Rezaei, Tehran is seeking an end to the war on all fronts, the release of Iran’s frozen assets and the lifting of the naval blockade.
Rezaei also said Pakistan’s Interior Minister, Mohsin Naqvi, is expected to travel to Tehran for talks with Iranian officials on finding a way back to the Memorandum of Understanding signed in June. MS Now reported that the White House has not yet responded to those claims.
Separately, Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with Iranian Foreign Minister Abbas Araghchi. Pakistan’s foreign ministry said Dar stressed the importance of uninterrupted energy supplies and the safe and expeditious passage of ships, particularly because of the implications for developing countries and global supply chains. The two ministers agreed to meet next week in New York on the sidelines of the United Nations General Assembly.
Reuters, citing a U.S. State Department spokesperson, noted that on Sept. 11 Washington said a “core delegation from the Iranian regime” would be allowed to attend the meeting in line with U.S. obligations as host of the United Nations.
Markets are also watching how the conflict is affecting oil prices. On Wednesday, Trump said the country was “hopefully” nearing the end of its nearly seven-month war with Iran.
Brent crude has risen 72% since the start of 2026 as the war disrupted energy flows through the Hormuz Strait between Iran and Oman. Saudi Arabia has tried to reroute oil exports away from that passage through its East-West pipeline to the Red Sea, but on Sept. 11 a drone strike that Saudi Arabia said originated in Iraq damaged the pipeline and forced a shutdown.
Oil prices fell for a third straight session on Friday as traders increasingly judged that the closure of Saudi Arabia’s East-West pipeline would have a smaller impact on supplies than initially feared. U.S. West Texas Intermediate futures dropped 1.6% to settle at $100.30 per barrel, while Brent fell 0.9% to $103.87.
