Oil Price soars, war looms large

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The Oil prices hit their highest in four months after two Iranian sponsored attacks on Saudi Arabian facilities on Saturday knocked out more than 5% of global supply triggering the possibility of all-out war between Saudis and Iran with US joining hands with the Saudis.

This morning Brent crude jumped 19% to $71.95 a barrel, while the other major benchmark, West Texas Intermediate, rose 15% to $63.34. Prices eased back slightly after US President Donald Trump authorised the release of US reserves.

Meanwhile, in Saudi Arabia, the biggest refining installations are continuously on fire for the second day after the Iranian backed Yemen based terrorists attacked the Aramco refineries with a drone.

An angry US President Donald Trump said Sunday that the United States was prepared to respond to the devastating attacks on two oil installations in Saudi Arabia that halved the state oil company’s production output, while Iran rejected US accusations that it was responsible.

“There is the reason to believe that we know the culprit,” Trump said in a tweet Sunday evening. He said the United States was “locked and loaded depending on verification.”

Trump did not name Iran, as Secretary of State Mike Pompeo had on Saturday, nor specify whether he was contemplating a military response. He said he was waiting to hear from the Saudis on “who they believe was the cause of this attack, and under what terms we would proceed!”

Trump administration was contemplating what US officials characterized as a serious military response, though some in the Pentagon were said to be urging restraint.

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