Oil Prices Soar after Saudi Facility Attacks

Oil Prices Soar after Saudi Facility Attacks

Oil prices surged to four-month highs on Monday after attacks on crude facilities in Saudi Arabia as supply fears sparked. The strikes on the facilities, which occurred in the weekends, halted 5% of the world’s oil production.

Crude Futures on both sides of the Atlantic hit their highest since May, but came off their peaks after U.S. President Donald Trump authorized the use of the country’s emergency stockpile to ensure supply stability.

Trump had also said that the US was “locked and loaded” for a potential response to the strikes on the Saudi facilities after a senior official in his administration blamed the attack on Iran.

Tensions in the oil-producing Gulf region has dramatically escalated this year after Trump imposed severe U.S. sanctions on Iran with aims to halt its oil exports altogether.