Attack on Saudi Arabia’s oil and gas facilities, US to marshal a global response -BBG
|- An attack on Saudi Arabia’s oil and gas facilities in Abqaiq.
- Responsibility for the attacks has been claimed by the Houthi rebels in Yemen.
Weekend events were centred around the energy market following an attack on Saudi Arabia’s oil and gas facilities in Abqaiq.
Bloomberg news writes that the responsibility for the attacks has been claimed by the Houthi rebels in Yemen, who say they used a swarm of drones to inflict great damage, "which has suspended half of the kingdom’s processing, corresponding to 6% of world supply, is a blow to one of the main arteries of the global economy. The Trump administration should use the United Nations General Assembly this week in New York to marshal a global response."
"In geopolitical terms, it might not make much difference: The Houthis and Iraq’s militias are both proxies for Iran, which supplies them with money and materiel, including weapons capable of striking deep into Saudi territory. The Islamic Republic denies any role in the attacks, but it has a long history of using proxies and cutouts to attack its regional rivals. U.S. Secretary of State Mike Pompeo has put the blame squarely on Iran, adding that there “is no evidence the attacks came from Yemen.”"
"The Trump administration should act swiftly to present proof of Iran’s culpability before the international community, and press for a unified response, especially from the other major world powers: China, Russia, Germany, France and Britain."
In word and deed, they should put Tehran on notice that its behavior will no longer be tolerated.
The General Assembly this week provides the perfect platform from which to do this. A resolution from the Security Council condemning Iran’s actions would be a good start. The other signatories should also reimpose economic sanctions on the regime, and be prepared to join a U.S.-led naval force protecting the Persian Gulf.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.