Yemen's Houthi rebels have taken credit for drone attacks that targeted the world's largest oil processing facility at Abqaiq and a major oilfield at Khurais in Saudi Arabia early Saturday morning, reports AP.
The latest: Secretary of State Mike Pompeo blamed Iran, which has supported the Houthis, for the attacks, saying "there is no evidence the attacks came from Yemen." Saudi Arabia's minister of energy confirmed that the country has shut down half of its oil production for the day, which amounts to a loss of roughly 5% of the world's daily crude oil production, per the Wall Street Journal.
Where it stands: The strikes on Saturday were the largest attacks on "Saudi Arabia's oil infrastructure in more than a decade," reports Bloomberg. The energy minister said Saudi Aramco, the state-owned oil giant, is "working to recover the lost quantities" and will give new information within 48 hours.
- The plant, which burst into flames, is "crucial to global energy supplies," writes AP.
- Executives from Saudi Aramco are having an emergency meeting to determine the damage of the strikes, says Bloomberg.
- The attacks come as Saudi Aramco is reviving preparations for a massive IPO.
Thought bubble, per Axios' Ben Geman: The attack is likely to push oil prices upward, perhaps significantly so, thanks to concern about geopolitical risk — even if, as the Wall Street Journal reports, production is quickly restored and overall Saudi supplies to global markets aren’t disrupted.
The big picture: The attack by Iranian-backed Houthi rebels is likely to increase tensions across the Persian Gulf between Saudi Arabia and Iran — bringing potential "risk to global oil supply," writes Bloomberg.
- The Houthi rebels, with Iran's support, have been fighting the Saudi-backed central government for years in a war that's led to the one of the world's worst humanitarian crises.
What they're saying: According to Deputy White House Press Secretary Judd Deere, President Trump and Saudi Crown Prince Mohammed bin Salman spoke on the phone Saturday, with Trump offering "his support for Saudi Arabia's self-defense," and saying, "Violent actions against civilian areas and infrastructure vital to the global economy only deepen conflict and mistrust." He added that the U.S. "remains committed to ensuring global oil markets are stable and well supplied."
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