UK condemns attacks on Saudi Arabian oil complexes as 'despicable' as US blames Iran

Trump warns: We are locked and loaded Drivers face 2p-a-litre rise as crisis deepens

Britain has condemned attacks on Saudi Arabian oil complexes as “despicable” and “outrageous” — as the United States blamed Iran for the destruction which today sent oil prices spiralling.

Foreign Office chiefs were this morning urgently analysing intelligence and diplomatic reports to identify who was behind the targeting of the Abqaiq oil processing plant and the Khurais oil field. However, the US was already pointing the finger of blame at Tehran.

As tensions rose, President Donald Trump tweeted: “There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the (Saudi) Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!”

Drivers in the UK were warned today that a dramatic spike in the oil price could add around 2p to the cost of a litre of petrol in the coming weeks.

Thick black smoke rising from Saudi Aramco's Abqaiq oil processing facility in Buqyaq
AP

US Secretary of State Mike Pompeo, who said Iran must be “held accountable for its aggression”, spoke to Iraq’s prime minister Adel Abdul Mahdi this morning. He also dismissed claims from Iran-backed Houthi rebels in Yemen, who are fighting a Saudi-led coalition in a civil war ravaging the country, that they carried out the attacks.

Washington released satellite images which it claims suggest the fire came from the direction of either Iran or Iraq, where a number of Iranian-backed militias are based.

One US official said there were 19 points of impact on the targets and the attacks, which may have been carried out using drones or missiles, had come from a west-north-west direction — not Houthi-controlled territory in Yemen, which lies to the south-west of the Saudi oil facilities.

Another US official said all options, including a military response, were on the table, but said no decisions had yet been made. The attacks on Saturday halted production of 5.7 million barrels of crude a day, more than half of Saudi Arabia’s global daily exports and more than five per cent of the world’s daily crude oil production.

The red areas mark where the drone stikes damaged the petroleum processing facility in Abqaiq.
AP

The blow led to a record spike in the price of oil. At one stage Brent crude soared by an unprecedented 20 per cent, but it later slipped back to stand at $66.64 a barrel, up 10 per cent, by mid morning.

The cost in the UK of filling up a 50 litre tank of a typical small hatchback could rise by £1, or a larger family car by around £1.40.

Brian Madderson, chairman of the Petrol Retailers’ Association, said: “It will work its way through the pumps if it holds up. We are talking about Saudi Arabian refineries that represent a significant dollop of global supply. If they are out of action for a while that is likely to continue to affect oil pricing.”

There were predictions that the oil price could surge higher still if the tensions in the Middle East escalate. Hussein Sayed, chief market strategist at FXTM, said: “Three days ago, oil prices hitting $100 a barrel was almost an impossible scenario. Not anymore.” Concerns were growing that the Yemen war, which is widely seen as a proxy war between Sunni Saudi Arabia and Shia Muslim rival Iran, could spiral into an even greater conflict.

Donald Trump has said the US is 'locked and loaded' to respond to attacks in Saudi Arabia.
REUTERS

Foreign Secretary Dominic Raab told Sky News: “The attack on the Aramco installations was a wanton violation of international law. It’s despicable. In terms of who is responsible, the picture is still not entirely clear.

“Before I talk about who is responsible, and the implications of that I want to have a very clear picture, which we will be getting shortly. It’s an outrageous act and we need to have as clear and united as possible international response to it.”

He spoke to Mr Pompeo yesterday and was due to hold talks with the Saudi and other governments today. China appealed for calm and restraint.

“Pondering who is to blame in the absence of a conclusive investigation I think is in itself not very responsible,” said Chinese foreign ministry spokeswoman Hua Chunying. Iranian President Hassan Rouhani’s regime has denied being involved in the attack but is being blamed for a new aggressive stance after Mr Trump pulled America out of the nuclear deal with Tehran last year.

The hardline Revolutionary Guard were widely suspected to have attacked oil tankers in the Gulf, using mines, and a number of Westerners visiting the country have been taken “hostage”, accused of spying, which they strongly deny. Saudi Arabia has pledged that its stockpiles would keep global markets supplied as it repairs damage at the Abqaiq facility and its Khurais oil field.

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