Qaeda Militants Kill 16, Hold 50 Hostage in Saudi

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Friday, May 29, 2004

(6:22 PM ET)

By Samia Nakhoul

Reuters

Saturday's attack prompted the U.S. embassy to reiterate a call last month for its citizens to leave Saudi Arabia. Britain condemned the attack and repeated a warning to its citizens to avoid all but essential travel to the kingdom. An Oasis compound employee said the militants had asked residents to show identity cards to find out their religions. "They were asking people if they were Christian, or Muslim."

Saudi Arabia's de facto ruler Crown Prince Abdullah addresses dignitaries May 29, 2004 in this video grab taken from television. Crown Prince Abdullah vowed on Saturday to crush militants out to harm the economy of the oil-rich kingdom after a suspected al Qaeda attack on the oil city of Khobar killed several Saudis and foreigners.

Image Credit: Al-Akhbariya via Reuters Television

KHOBAR, Saudi Arabia -- Reuters
Suspected al Qaeda militants killed 16 people, including Westerners, and seized 50 foreign hostages on Saturday in a second major attack in a month aimed at destabilizing the top world oil exporter, Saudi Arabia.

Saudi forces surrounded a housing compound building where the militants holed up with the hostages after spraying gunfire at other buildings in the eastern city of Khobar used by oil firms and expatriates. Nine Saudis and seven foreigners died.

"They are holding 50 foreign hostages. There are Americans, but there are more Italians. There are also Arabs," said a manager of the Oasis compound, declining to be named.

He said the Arab hostages were Christians and that there was an Italian restaurant in the complex, where Italians worked and lived. A Foreign Ministry official told Reuters in Rome however no Italians were among the hostages.

Oil markets have been on edge over the possibility of a militant strike disrupting oil supplies, and the situation in Saudi Arabia has already helped push prices to $40 a barrel.

"This is close to the nerve center of the Saudi oil industry, (state oil firm) Aramco headquarters in Dhahran," said Yasser Elguindi, an analyst with Medley Global Advisers in New York. "It could have a devastating impact on the oil market when we reopen (on Tuesday) after the Memorial Day weekend."

* WESTERNERS AMONG DEAD

* SAUDI VOW TO CRUSH MILITANTS

* BUILDINGS HIT BY GUNFIRE

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Dan