Yemen's Houthis fire missiles, drones at Saudi Arabia's oil site

US condemns attack, says its commitment to defend Saudi 'unwavering'

Saudi Arabia said some of the world’s most protected oil infrastructure came under missile and drone attack in an escalation of regional hostilities that pushed up crude prices.

 

The attacks on Sunday were intercepted, Saudi Arabia said, and oil output appeared to be unaffected. But the latest in a spate of assaults claimed by Iran-backed Houthi rebels briefly pushed oil prices above $70 a barrel for the first time since January 2020 and will likely complicate efforts by US President Joe Biden to engage in nuclear diplomacy with Iran.

 

The attacks are the most serious against Saudi oil installations since a key processing facility and two fields came under fire in September 2019, cutting production for about a month and exposing the vulnerability of the kingdom’s petroleum industry. Yemen’s Houthi fighters claimed responsibility for that attack although Riyadh and Washington pointed the finger at arch-rival Iran. The US held back from military confrontation and said at the time it would boost air and missile defenses in the kingdom.

 

On Monday, the US said its commitment to defend Saudi Arabia is “unwavering.” In a Twitter post, the U.S. mission in Riyadh condemned the attacks, which it said demonstrated a “lack of respect for human life” and a “lack of interest in the pursuit of peace.”

 

An oil storage tank farm at the Ras Tanura export terminal on the Persian Gulf coast was attacked by a drone from the sea, according to the Energy Ministry. Shrapnel from a missile also landed close to a residential compound for employees of national oil company Saudi Aramco in Dhahran, where windows shook and witnesses said they took shelter. The compound is home to families of Saudi and expat employees, and there’s a U.S. consulate nearby. Ras Tanura is about an hour by car up the coast.

 

“Both attacks did not result in any injury or loss of life or property,” a spokesman for the Saudi Energy Ministry said. Two people familiar with the situation also said oil output was unaffected, and on Monday loading in the Ras Tanura area was continuing, with tankers docking on the north pier and sea islands.

 

Defences

 

Ras Tanura’s airspace is heavily defended: it is close to a large Saudi air base and its offshore loading terminals are equipped with protection against undersea attack. The Houthis launched eight ballistic missiles and 14 bomb-laden drones at Saudi Arabia, a spokesman for the group, Yahya Saree, said in a statement to rebel-run Al Masirah television.

 

Saudis raise oil prices for Asia

 

Saudi raised pricing for its crude for Asia and the US next month after Opec+ extended oil supply constraints.  The exporter is boosting pricing for barrels sold eastwards to the highest levels since just before the Saudis unleashed a brief price and supply war a year ago.