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Tuesday 20th March 2018

Oil Prices Soar After Attacks on Saudi Facilities

Business

7Dnews London

Mon, 16 Sep 2019 11:07 GMT

A price hike in oil prices on Monday September 16th followed the attacks on two Saudi facilities and caused production to be cut by half in the world's top exporter, acerbating concerns as Donald Trump pointed a finger at Iran and hinted that a military strike is a possibility.

The Tehran-backed Houthi rebels in neighbouring Yemen claimed responsibility for the attack that hit two sites owned by state-run Aramco, effectively shutting down 6% of the global oil supply, AFP reported.

On Sunday, Trump said the US was "locked and loaded" to react to the attack, but was in talks with Riyadh.

"The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression", Secretary of State Mike Pompeo said.

Despite Tehran’s denials of involvement, the accusations revived fears of a conflict in the Middle East following a series of attacks on oil tankers earlier this year.

According to the New York Times earlier, US officials had satellite images showing the attacks, using drones and cruise missiles, had come from the north or northwest, meaning they came from the northern Arabian Gulf, Iran or Iraq, rather than Yemen.

Middle East