U.S. 'locked and loaded' after Saudi attack

Video Credit: Reuters Studio
Published on September 16, 2019 - Duration: 01:41s

U.S. 'locked and loaded' after Saudi attack

U.S. President Donald Trump said the U.S. is "locked and loaded" after the attack on Saudi oil, and has "reason to believe that we know the culprit." Meanwhile, analysts are warning that if the price of oil stays at record highs it could further risk a global recession.

Michelle Hennessy reports.

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U.S. 'locked and loaded' after Saudi attack

"Locked and loaded," that's the message from President Donald Trump - who said the U.S. was primed after weekend attacks on the world's largest oil-processing facility in Saudi Arabia.

Trump tweeted on Sunday (September 15) saying "There is reason to believe that we know the culprit." U.S. Secretary of State Mike Pompeo also took to Twitter, blaming Iran for the attack on state oil giant Aramco, instead of Yemen's Houthi rebels who have claimed responsibility.

So far, Iran has denied involvement in the strikes, which have wiped out five percent of global oil production.

But have warned they're ready for full-fledged war.

It's inflaming investor concerns about the state of US-Iran relations, and stability in the middle east.

Satellite images released on Sunday showed huge plumes of thick black smoke over the Saudi facility.

The attacks pushed oil prices to four month highs on Monday (September 16) amid concerns over global supply.

Brent crude posted its highest percentage gain in a single day of trading in nearly three decades.

Aramco has not given a timeline for when they'll fully recover from the attack.

And analysts are warning over the effects that could have in the coming weeks and months.

An oil price hike could impact the entire economic chain of big importers like China.

One analyst told Reuters a disruption in oil supply could bring dire consequences to the global economy, and increase the chances of a world-wide recession.

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