There is no international incident. No one is saying that this will harm potential relations between Saudi Arabia and Israel.
The reason is because he was a Shiite terrorist, described as a fighter in Hezbollah, where he was known as Imran Karim. Hezbollah has extensively mourned his "martyrdom."
The terrorist's father, Ahmed Al-Mughassil, was he leader of the military wing of Saudi Hezbollah. He is now in a Saudi prison for his role in the 1995 Khobar Towers bombing that killed 19 US Air Force personnel.
The US is still seeking Ahmed for trial.