Trump: U.S. ‘locked, loaded’ after attack
President warns Iran that America is ready to respond to attack on Saudi oil facilities
DUBAI, United Arab Emirates — Global energy prices have spiked after an attack on the heart of Saudi Arabia’s oil infrastructure as President Donald Trump warned Iran that America was “locked and loaded” to respond to an assault it alleges Tehran orchestrated.
Benchmark Brent crude gained nearly 20% in the first moments of trading Monday before settling down to 10% higher. A barrel of Brent traded up $6 to $66.28.
U.S. benchmark West Texas crude was up around 9%.
Yemen’s Iranian-backed Houthi rebels claimed the attacks Saturday. However, the U.S. released satellite images overnight Monday it alleges shows the fire came from either Iraq or Iran.
Iran has denied being involved in the attack, though it comes amid heightened tensions over Tehran’s unraveling nuclear deal with world powers.
The president’s tweets followed a National Security Council meeting at the White House that included Vice President Mike Pence, Secretary of State Mike Pompeo and Defense Secretary Mark Esper.
A U.S. official said all options, including a military response, were on the table, but said no decisions had been made Sunday. Iran, meanwhile, called the U.S. claims “maximum lies,” while a commander in its paramilitary Revolutionary Guard reiterated its forces could strike U.S. military bases across the Mideast with their arsenal of ballistic missiles.
The U.S. government produced satellite photos showing what officials said were at least 19 points of impact at two Saudi energy facilities, including damage at the heart of the kingdom’s crucial oil processing plant at Abqaiq. Officials said the photos show impacts consistent with the attack coming from the direction of Iran or Iraq, rather than from Yemen to the south.
Iraq denied Sunday that its territory was used for an attack on the Kingdom and U.S. officials said a strike from there would be a violation of Iraq’s sovereignty.
The U.S. officials said additional devices, which apparently didn’t reach their targets, were recovered northwest of the facilities and are being jointly analyzed by Saudi and American intelligence.
The attacks and recriminations have already heightened fears of an escalation in the region, after a prominent U.S. senator suggested striking Iranian oil refineries in response to the assault, and Iran warned of the potential of more violence.
Actions on any side could break into the open a twilight war that’s been raging just below the surface of the wider Persian Gulf in recent months. Already, there have been mysterious attacks on oil tankers that America blames on Tehran, at least one suspected Israeli strike on Shiite forces in Iraq, and Iran shooting down a U.S. military surveillance drone.
The attack Saturday on Saudi Arabia’s Abqaiq plant and its Khurais oil field led to the interruption of an estimated 5.7 million barrels of the kingdom’s crude oil production per day, equivalent to more than 5% of the world’s daily supply. It remained unclear how King Salman and his assertive son, Crown Prince Mohammed bin Salman, will respond to an attack targeting the heart of the Saudi oil industry.
Saudi Arabia has promised to fill in the cut in production with its reserves, but has not said how long it will take to repair the damage. The Wall Street Journal cited Saudi officials as saying a third of output would be restored on Monday, but a return to full production may take weeks.
Trump said he had approved the release of U.S. strategic petroleum reserves “if needed” to stabilize energy markets.