Attack on Saudi oil sites raises risks amid US-Iran tension

Iraq denied Sunday that its territory was used for an attack on the Kingdom and U.S. officials said a strike from there would be a violation of Iraq’s sovereignty.

The U.S. officials said additional devices, which apparently didn’t reach their targets, were recovered northwest of the facilities and are being jointly analyzed by Saudi and American intelligence. The officials, who spoke on condition of anonymity to discuss intelligence matters, did not address whether the drone could have been fired from Yemen, then taken a round-about path, but did not explicitly rule it out.

The attacks and recriminations are increasing already heightened fears of an escalation in the region, after a prominent U.S. senator suggested striking Iranian oil refineries in response to the assault, and Iran warned of the potential of more violence.

“Because of the tension and sensitive situation, our region is like a powder keg,” said Iranian Brig. Gen. Amir Ali Hajizadeh. “When these contacts come too close, when forces come into contact with one another, it is possible a conflict happens because of a misunderstanding.”

Actions on any side could break into the open a twilight war that’s been raging just below the surface of the wider Persian Gulf in recent months. Already, there have been mysterious attacks on oil tankers that America blames on Tehran, at least one suspected Israeli strike on Shiite forces in Iraq, and Iran shooting down a U.S. military surveillance drone.

The attack Saturday on Saudi Arabia’s Abqaiq plant and its Khurais oil field led to the interruption of an estimated 5.7 million barrels of the kingdom’s crude oil production per day, equivalent to more than 5% of the world’s daily supply. It remains unclear how King Salman and his assertive son, Crown Prince Mohammed bin Salman, will respond to an attack targeting the heart of the Saudi oil industry.

There was no immediate impact on global oil prices from the attacks as markets were closed for the weekend, but analysts anticipate a spike in oil prices when markets reopen Monday. Saudi Arabia has promised to fill in the cut in production with its reserves, but has not said how long it will take to repair the damage. The Wall Street Journal cited Saudi officials as saying a third of output would be restored on Monday, but a return to full production may take weeks.

Images from the European Commission’s Sentinel-2 satellite examined by the AP showed black char marks at the heart of the Abqaiq plant on Sunday, marks not seen over the prior month. Identical marks are visible on the U.S. imagery. The Washington-based Center for Strategic and International Studies in August identified the area with the char marks as the plant’s stabilization area. The centre said the area includes “storage tanks and processing and compressor trains — which greatly increases the likelihood of a strike successfully disrupting or destroying its operations.”

The state-run oil giant Saudi Aramco, which the kingdom hopes to offer a sliver of in a public stock offering, did not respond to a request for comment.

Pompeo directly blamed Iran for the Saudi attack on Twitter late Saturday, and officials worked to provide evidence for his claim the following day.

“Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world’s energy supply,” Pompeo wrote. “There is no evidence the attacks came from Yemen.”

Senior U.S. officials, including Pompeo, Vice-President Mike Pence and Defence Secretary Mark Esper, were seen at the White House Sunday afternoon for a National Security Council meeting on the attack.

The U.S., Western nations, their Gulf Arab allies and U.N. experts say Iran supplies the Houthis with weapons and drones — a charge that Tehran denies.

U.S. officials previously alleged at least one recent drone attack on Saudi Arabia came from Iraq, where Iran backs Shiite militias. Those militias in recent weeks have been targeted themselves by mysterious airstrikes, with at least one believed to have been carried out by Israel.

Iranian Foreign Ministry spokesman Abbas Mousavi on Sunday dismissed Pompeo’s remarks as “blind and futile comments.”

“The Americans adopted the ‘maximum pressure’ policy against Iran, which, due to its failure, is leaning toward ‘maximum lies,'” Mousavi said in a statement.

Separately, Iraqi Prime Minister Adel Abdul-Mahdi’s office issued a statement on Sunday denying the drone attack came from there. Oil-rich Kuwait also said it would increase security around the country’s “vital sites” over the attacks.

Houthi leader Muhammad al-Bukhaiti reiterated his group’s claim of responsibility, telling The Associated Press on Sunday it exploited “vulnerabilities” in Saudi air defences to strike the targets. He did not elaborate.

Iran, meanwhile, kept up its own threats.

Hajizadeh, the brigadier general who leads the country’s aerospace program, said in an interview published across Iranian media Sunday that Revolutionary Guard forces were ready for a counterattack if America responded, naming the Al-Udeid Air Base in Qatar and Al-Dhafra Air Base near Abu Dhabi in the United Arab Emirates as immediate targets, as well as U.S. Navy ships in the Persian Gulf and the Arabian Sea.

“Wherever they are, it only takes one spark and we hit their vessels, their air bases, their troops,” he said in a video published online with English subtitles.

It wasn’t just Iran making threats. U.S. Sen. Lindsey Graham, a South Carolina Republican close to President Donald Trump, suggested retaliatory strikes targeting Iran. “Iran will not stop their misbehaviour until the consequences become more real, like attacking their refineries, which will break the regime’s back,” Graham wrote on Twitter.

All this comes before the United Nations General Assembly in a little over a week. There’s been speculation of a potential meeting between Trump and Iranian President Hassan Rouhani on the summit’s sidelines, possibly in exchange for the lifting of some economic sanctions the American leader imposed on Tehran after unilaterally withdrawing from the nuclear accord over a year ago.

If Iran had a hand in Saturday’s attack, it could be to bolster their position ahead of any talks, analysts say.

“The main point for Iran, in my opinion, is not necessarily to derail a meeting between Trump and Rouhani but to increase its leverage ahead of it,” said Michael Horowitz, the head of intelligence at the Bahrain-based risk management firm Le Beck International. “By carrying out such a major attack, Iran wants to send the message that the only way to decrease tensions is to comply with its demands regarding sanctions relief.”

However, he warned there could be a danger of Iran “overplaying” its hand.

“There will be no political benefit for Trump in a meeting with Rouhani if this meeting sends the message that the U.S. simply surrendered to Iranian demands,” he said.

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Miller reported from Washington. Associated Press writers Amir Vahdat in Tehran, Iran; Aya Batrawy in Dubai, United Arab Emirates; Bassem Mroue in Beirut and Samy Magdy in Cairo contributed to this report.

Jon Gambrell And Zeke Miller, The Associated Press

by Canadian Press

Attack on Saudi oil sites raises risks amid US-Iran tension

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