Breaking News
0

Iran dismisses U.S. claim it was behind Saudi oil attacks, says ready for war

WorldSep 15, 2019 07:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Rania El Gamal and Parisa Hafezi

DUBAI (Reuters) - Iran dismissed accusations by the United States that it was behind attacks on Saudi oil plants that risk disrupting global energy supplies and warned on Sunday that U.S. bases and aircraft carriers in the region were in range of its missiles.

Yemen's Iran-aligned Houthi group claimed responsibility for Saturday's attacks that knocked out more than half of Saudi oil output or more than 5% of global supply, but U.S. Secretary of State Mike Pompeo accused Iran of the attack on the world's energy supply.

The drone strikes on plants in the heartland of Saudi Arabia's oil industry, including the world's biggest petroleum processing facility, were expected to send oil prices up $3-$5 per barrel on Monday as tensions rise in the Middle East.

Iranian foreign ministry spokesman Abbas Mousavi, speaking on state TV, dismissed the U.S. allegation as "pointless". A senior Revolutionary Guards commander warned that the Islamic Republic was ready for "full-fledged" war.

"Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometers around Iran are within the range of our missiles," the semi-official Tasnim news agency quoted commander Amirali Hajizadeh as saying.

State oil giant Saudi Aramco said the attack cut output by 5.7 million barrels per day, about half the kingdom's production, at a time when Aramco is trying to ready itself for what is expected to be the world's largest share sale.

Aramco gave no timeline for output resumption but said early Sunday it would give a progress update in around 48 hours. A source close to the matter told Reuters the return to full oil capacity could take "weeks, not days".

Traders and analysts said crude may spike to as high as $100 if Riyadh fails to quickly bring back supply. [L5N266095]

The kingdom, the world's top oil exporter, ships more than 7 million barrels of oil to global destinations every day.

Riyadh said it would compensate for the loss by drawing on reserves which stood at 188 million barrels in June, according to official data. The United States said it was also ready to tap emergency oil reserves if needed.

The Saudi bourse opened down 2.3% on Sunday but later pared some losses. Saudi petrochemical firms announced a significant reduction in feedstock supplies.

"Abqaiq is the nerve center of the Saudi energy system. Even if exports resume in the next 24-48 hours, the image of invulnerability has been altered," Helima Croft, global head of commodity strategy at RBC Capital Markets, told Reuters.

Saudi authorities have yet to blame any party for the strike, but linked it to a recent series of attacks on Saudi oil assets and crude tankers in Gulf waters.

SAUDI READY TO ACT

Pompeo said there was no evidence the attack came from Yemen, where a Saudi-led coalition has been battling the Houthis for over four years in a conflict widely seen as a proxy war between rivals Sunni Muslim Saudi Arabia and Shi'ite Iran.

Riyadh has accused Iran and its proxies of being behind previous attacks on oil pumping stations and the Shaybah oilfield, charges Tehran denies.

Some Iraqi media outlets said the attack originated from there, where Iran-backed paramilitary groups wield increasing power. Iraq denied this on Sunday and vowed to punish anyone using Iraq as a launchpad for attacks.

Regional tensions have escalated since Washington quit an international nuclear deal and extended sanctions on Iran to choke off its vital oil exports.

France, condemning Saturday's attack, said such actions "can only worsen regional tensions and risk of conflict". Turkey, an ally of Iran, called for the avoidance of "provocative steps" that could harm regional stability.

The attack comes after U.S. President Donald Trump said a meeting with Iranian President Hassan Rouhani was possible at the United Nations General Assembly in New York this month. Tehran ruled out talks until sanctions are lifted.

"Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said in a Twitter post on Saturday.

Saudi de facto ruler Crown Prince Mohammed bin Salman told Trump by telephone on Saturday that Riyadh was willing and able to deal with the "terrorist aggression".

A senior Emirati official said the UAE, Riyadh's main partner in the Western-backed military coalition in Yemen, would fully support Saudi Arabia as the assault "targets us all".

The UAE, concerned about the rising tensions with Iran and Western criticism of the war, has scaled down its military presence in Yemen, leaving Riyadh to try to neutralize the Houthis to prevent Iran from gaining influence along its border.

Riyadh accuses Iran of arming the Houthis, a charge both of them deny.

Iran's foreign minister Mohammed Javad Zarif tweeted that Washington and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster".

The conflict has been in military stalemate for years. The alliance has air supremacy but has come under global scrutiny over civilian deaths and a humanitarian crisis that has pushed millions to the brink of famine.

The Houthis, more adept at guerrilla warfare, have stepped up missile and drone attacks on Saudi cities, thwarting U.N. peace efforts.

Iran dismisses U.S. claim it was behind Saudi oil attacks, says ready for war
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Hank Williams
Hank Williams Sep 16, 2019 12:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Iran is always locked and loaded.
secure us
secure us Sep 15, 2019 7:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
has Iran ever told the truth? perhaps trump is from there ???
AMY gupta
Rambo1 Sep 15, 2019 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
S&P Global Platts estimated that Brent oil, the international benchmark, could see a $5 or $10 price surge from its current levels. r.r.“While some commentators may call for triple digit oil prices we would suggest that the sudden change in geopolitical risk warrants not only an elimination of the $5-10/Bbl discount on bearish sentiment, but adds a potential $5-10/Bbl premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity,” the Platts researchers wrote. r.r.“As such prices are likely to break out of the current $55-65/Bbl options range, to test the high $70s as currently supported by fundamentals,” the researchers said. r.r.r.we may see $100 dollar per bbl soon.r.Croft said Saturday’s major incident raises the risk of further disruptions to Middle East output that likely elevates the risk of oil prices vaulting higher (see map below via RBC Capital Markets showing recent incidents):
Wrongway Whiplash
Wrongway Whiplash Sep 15, 2019 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol....Really!! How convenient! This shell game never ceases to entertIn.
kaisar imam
kaisar imam Sep 15, 2019 12:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US supplied Thaad failed to intercept drone attack throw the junk to ocean and buy S400
Dima Bedin
Dima Bedin Sep 15, 2019 12:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
С400 then not S400
David Wong
David Wong Sep 15, 2019 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We need oil back above $100... been losing on oil for far too long.
Ron Warren
Ron Warren Sep 15, 2019 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mr Wong, average Americans can't afford 5.00 for gas.
Dima Bedin
Dima Bedin Sep 15, 2019 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ron Warren So they ll afford Seat Punto/Ibiza then, not your average 5L smth 4X4
Herra Peruna
Herra Peruna Sep 15, 2019 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dima Bedinpunto is a fiat, not seat
Ron Warren
Ron Warren Sep 15, 2019 12:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The AI running our market will probably turn a blind eye and go green.
Bobby Owen
Bobby Owen Sep 15, 2019 12:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There problem not ours
John Wim
John Wim Sep 15, 2019 12:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I hope Trump will not get involved in this. Let the Saudis handle this on their own.
John van Leeuwen
John van Leeuwen Sep 15, 2019 12:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Carefull, what you wish for. I don't know that the world can ignore this. Iran is close to joining the nuclear club. Your going to give up saudi to the russians?
Tim Lee
Tim Lee Sep 15, 2019 11:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Saudi Arabia problem now. USA isn't the World's Police Department..We have plenty of oil , don't need them
John van Leeuwen
John van Leeuwen Sep 15, 2019 11:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ah, but will the usa completely turn an blind eye? I doubt it. 100 oil I would think gaurentee's the world falling into recession quickly. Not good for the republicans?!
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Sep 15, 2019 11:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes 60 to 61 is first level
Doug Reed
Doug Reed Sep 15, 2019 10:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
CL straight to $60 or $61 this afternoon.
Blaq Arenhar DeeBee
Blaq Arenhar DeeBee Sep 15, 2019 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how is this gonna affect the market
Steven Ownz
Turtle_Steven Sep 15, 2019 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil will go up and equity will come down a bit. if trump tweets anything related to military intervention on Iran, well, gg equity in short term. hello oil. lol
Steven Ownz
Turtle_Steven Sep 15, 2019 9:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lmao! if it doesn't look like A did it so therefore B must have done it. how do we know it is not US who really did it and looking for a reason to get into another war? I am sure Iran could have came out saying it doesn't look like Yemen did it so therefore only US is capable of good invasion, and therefore... lol
Silverbug 19
Silverbug 19 Sep 15, 2019 8:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The picture is fake. Saudi oil is all on fire. Oil price.com
Michael Becker
Becker908 Sep 15, 2019 8:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hoping the Saudis wipe Iran off the face of the earth.
Dima Bedin
Dima Bedin Sep 15, 2019 8:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And they should start with you personaly.
Steven Ownz
Turtle_Steven Sep 15, 2019 8:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
maybe you should enlist your entire family to help them out. lmao.
John van Leeuwen
John van Leeuwen Sep 15, 2019 8:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not many countries could prevent invasion from iran. If saudi starts an war on it's own. it would be the end of saudi. But, it's not like other countries arn't involved.
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Sep 15, 2019 7:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this coming week and month will be very Crude .. no pun intended
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email