Evidence points to Iranian hand in oil attack, says Saudi alliance, as prices soar

September 16, 2019
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An attack on Saudi Arabia that triggered the biggest jump in oil prices in almost 30 years was carried out with Iranian weapons, a Saudi-led coalition said on Monday, as President Donald Trump said the United States was “locked and loaded” to hit back.

The Iran-aligned Houthi group that controls Yemen’s capital claimed responsibility for Saturday’s attack, which knocked out more than half of Saudi Arabia’s oil production and damaged the world’s biggest crude processing plant.

Iran denied U.S. accusations it was to blame and said it was ready for “full-fledged war”.

Two sources briefed on state oil company Saudi Aramco’s operations told Reuters it might take months for Saudi oil production to return to normal. Earlier estimates had suggested it could take weeks.

A Saudi-led military alliance battling the Houthis said the attack on Saudi oil plants was done with Iranian weapons and was not launched from Yemen, according to preliminary findings.

Coalition spokesman Colonel Turki al-Malki said that an investigation into Saturday’s strikes, which shut 5% of world crude output, was going on to determine the launch location.

“The preliminary results show that the weapons are Iranian and we are currently working to determine the location … The terrorist attack did not originate from Yemen as the Houthi militia claimed,” Malki told a news conference in Riyadh.

U.N. Yemen envoy Martin Griffiths told the Security Council on Monday it was “not entirely clear” who was behind the strike but he said it had increased the chances of a regional conflict.

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