Saudi Arabian oil facilities have been attacked by the Houthi rebel group from Yemen. This terrorist organization is financed and ideologically backed up by Iran. While the Saudi Kingdom tries to rebuild all the affected oil supply units, the United States points to Iran. How much will Oil Prices increase this week? First numbers show a starting of 18%. What is next?
WHAT HAPPENED?
The attack (already claimed by the Yemen’s Houthi rebel group) took place this Saturday and hit the Saudi Arabian oil facilities of Aramco in Khurais and Abqaiq, which is the world’s largest oil processing plant. The Iranian backed Shiite militia has bases in Southern Iraq and launched what is know (for now) as a “Drone Attack) from this region and not directly from Yemen. While the investigation is on course, video footage already shows some “Cruise Missiles” being stopped by Saudi Arabia’s defense system: Is there a possibility that Iran successfully tested a medium-range missile over Prince Bin-Salman’s reign?
WHICH ARE THE EFFECTS OF THIS ATTACK?
1 – OIL PRICES: Up to know, crude oil has started the week with an 18% increase and it might get higher as the status of the oil supply information becomes more clear. Saudi Arabia already informed that at least 5% of the daily global supply has been affected and has not estimated date for reparations to be finished.
2 – WORLD MARKET: Oil is main for most industries (not to say for all) but it can also affect the financial market directly: Aramco was getting ready to go public and has already been labeled as the world’s largest IPO.
3 – WAR SCENARIO: During the last days two situations looked like a good sign for Iran and its allies: John Bolton leaving the White House and Donald Trump open to talk to Rouhani. Now things cannot be worst: Mike Pompeo pointed directly to Iran for this attack and while we wait for the week to start … sanctions (Was Trump Hard Enough With Iran?) can be increased and there is a strong chance that Trump will suggest more troops and an intense military presence over the Persian Gulf.
What do you think?
