This archive report was first published on 16 September 2019.
On September 16, 2019, oil prices skyrocketed more than 10% following attacks on two Saudi Arabian oil plants, which significantly reduced the world's top oil producer's output by half.
According to reports, the attacks by Tehran-backed Huthi rebels in neighboring Yemen effectively shut down six percent of the global oil supply, causing Brent oil prices to soar almost 20% at one point.
US President Donald Trump responded to the attacks by stating that the US was 'locked and loaded' to respond, while Secretary of State Mike Pompeo emphasized that the US would work with its partners and allies to ensure energy markets remained well supplied and hold Iran accountable for its aggression.
Tehran has denied the accusations, but the incident has revived fears of a conflict in the Middle East, particularly after a series of attacks on oil tankers earlier this year that were also blamed on Iran.
Jeffrey Halley, senior market analyst at OANDA, noted that tensions in the Middle East were rising quickly, meaning the story would continue to reverberate throughout the week.
