Oil prices soar after attacks in Saudi Arabia

By Doug Mattushek - 16 September 2019Views : 504

Following two attacks on Saudi oil facilities, the price of Brent crude oil jumped nearly 20% at one point.

Twin attacks at Abqaiq and the Khurais oil field have affected about 50% of the nations oil output, cutting about 5% of the global oil supply.

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This pushed the price up to $71.96 a barrel, though it had settled to $65.23 at the time of writing.

The US secretary of state Mike Pimpeop placed the blame squarely on Iran, while the middle eastern nation has denied the allegations.

On Sunday, US President Donald Trump revealed that the military is "locked and loaded", implying the US is ready to retaliate once the perpetrator was known.

"Saudi Arabia oil supply was attacked," Trump tweeted.

"There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!"

The attack increases tension in the region, where the Saudis and Yemen are already at odds. Saudi Arabia's air campaign against the Houthi rebel group is backed by the US. It is believed Iran is providing assistance to the rebel group.