Saudi Arabia has said some of the world’s most secured oil infrastructure has been hit, while rising regional hostility has sent crude prices. The attack on Sunday has been seized, says Saudi Arabia, and oil extraction appears unaffected. But the latest Iran-backed Houthi attacks, pushed oil prices to more than $70 a barrel for the first time since January 2020. The attack is even worse compared to Saudi oil imports since an important processing plant and two fields came under fire in September 2019, cutting production for almost a month and exposing the state’s oil industry. The Yemeni Houthi fighters claimed responsibility for the attack, although Riyadh pointed the finger at Iran’s arch rival.
On Sunday, the Saudi Ministry of Energy said a tank of oil storage at the Ras Tanura depot on the Persian Gulf coast in the country had been hit by a drone from the sea. Shrapnel from the missile also arrived near the residence of employees of the national oil company Saudi Aramco in Dhahran. The compound is home to Saudi families and expatriates, and there is an American embassy nearby. Witnesses in the coastal city of Dhahran, where Aramco is headquartered, reported the explosion that shook the city and shattered windows. Brent crude rose 2.9% to $ 71.37 a barrel on Monday, rising sharply since January 2020. Ras Tanura is the world’s largest oil reservoir, capable of shipping about 6.5 million barrels per day – about 7% of oil demand and is therefore highly protected. The Saudi-led coalition has been fighting the Houthis since 2015. The war has killed thousands of people and created what the United Nations calls a major global humanitarian crisis.
On Sunday the Saudi-led coalition said the latest U.S. decision of Withdrawal of appointments for Houthis as terrorists intensify attacks. Biden officials have moved into a ditch after being warned by the UN about famine. Donald Trump’s administration was adopted by the label toward the end of his term as president, and was seen as a way to increase pressure on Iran. Biden during his campaign promised to renew the nuclear deal between Iran and world powers. The administration of Biden would have been placed in a very difficult position if the attack had led to serious damage or damage to infrastructure, after promising to protect Saudi Arabia’s security interests, especially to clarify the threat to the border from Yemen.
The coalition has staged retaliatory strikes in the Yemeni capital, Sana’a. It claims to have taken missiles and drones from the state from Yemen, just as Houthi rebels have carried out a series of attacks – including Ras Tanura. The group unveiled eight bombshells and 14 bomb-laden drones in Saudi Arabia. The Houthis continued to attack Saudi Arabia and last week claimed to have hit the Aramco fuel depot in Jeddah with a cruise missile and military base. It was not immediately clear how much damage had been done. While such attacks are rarely the cause of much damage, their frequency has created tensions in the Gulf, affecting oil and shipping markets.
