Energy prices spike after Saudi oil attack, U.S. blaming Iran
The U.S. tried to build its case Monday that Iran was behind the fiery weekend attack on key Saudi Arabian oil facilities that raised new war worries and sent energy prices spiraling worldwide. Iran denied responsibility, while President Trump said the United States was “locked and loaded” to respond if necessary.
For his part, Trump sent mixed signals, saying his “locked and loaded” government waited for Saudi confirmation of Iran being behind the attack while later tweeting that the U.S. didn’t need Mideast oil “but will help our Allies!”Downplaying any talk of imminent U.S. military action, Vice President Mike Pence’s chief of staff, Marc Short, told reporters at the White House that the president’s language was “a reflection” that his administration was advancing policies that protect the U.S.
Those tensions have increased ever since Trump pulled the U.S. out of Iran’s 2015 agreement with world powers that curtailed Iranian nuclear activities and the U.S. reimposed sanctions that sent Iran’s economy into free fall.Benchmark Brent crude prices gained nearly 20% in the first moments of trading Monday before settling down to over 10% higher as trading continued. A barrel of Brent traded up $6.45 to $66.67.
U.S. officials say that the damage done to the north-facing parts of the facilities suggest the attack instead came across the Persian Gulf from Iraq or Iran. American officials have yet to offer substantial evidence to support their claims, though Iran in the past has relied on hard-to-attribute attacks or proxy forces to launch assaults against its enemies.
Iranian Foreign Ministry spokesman Abbas Mousavi again denied the U.S. claims Monday, telling journalists the accusation was “condemned, unacceptable and categorically baseless.” Government spokesman Ali Rabiei, meanwhile, said a Trump-Rouhani meeting in New York as of now wouldn’t happen. U.S. satellite photos released overnight appeared to show the attack on Abqaiq, the world’s largest oil processing facility, may have struck the most sensitive part of the facility, its stabilization area. The Washington-based Center for Strategic and International Studies has said the area includes “storage tanks and processing and compressor trains — which greatly increases the likelihood of a strike successfully disrupting or destroying its operations.
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