Oil gains on Saudi supply disruption, Mideast tensions

Tuesday, 24 Sep, 2019

Saudi Arabia said it would be forming a united front at the United Nations General Assembly in NY next week against Iran.

He underlined that no meeting is scheduled to be held between Rouhani and Trump during the NY visit and Iran will hold talks only in case the USA returns to the JCPOA and removes all the imposed sanctions.

Saudi Arabia said the attacks would be considered an "act of war" if an investigation proves Iran was behind them, while Iran has promised a "crushing reaction" to any aggression on its borders.

It is more or less obvious that while most Persian Gulf littoral states are US allies, Rouhani's plan has very little if any chance to be embraced.

"I find it, from the information I have seen, I find it entirely implausible and lacking in credibility to suggest that those attacks came from Houthi rebels", Raab told the BBC, but he declined to say to whom Britain attributed the attacks.

"Even if war with Iran is averted, serious questions remain about the security of Saudi oil supplies", said economists at Moody's Analytics in a note. "And clearly if we are asked, either by the Saudis or by the Americans, to have a role, then we will consider in what way we could be useful".

"UK believes it is very likely that Iran was responsible for the outrageous, unlawful attack on oil facilities in Saudi Arabia", Raab said on Twitter. As Europe has failed to secure a financial vehicle for the sale of Iranian oil, Iran has incrementally reduced its commitments under the deal.

But Kerry stressed that tensions between the US and Iran should not have reached this boiling point in the first place, saying that Tehran's more aggressive behavior in recent months stems from the "economic war" the Trump administration is waging against its longtime geopolitical adversary.

Speaking on the plane Johnson said one of his key objectives at UNGA was to help "bring the world together in response to what happened in Saudi Arabia, in our management of Iran". "Iran's leadership supports diplomacy but if Americans want to ease tension, they should lift sanctions and end pressure on Tehran". But analysts said the systems are created to defend against high-flying ballistic missiles and were vulnerable to swarms of low-and-slow drones and subsonic, ground-hugging cruise missiles.

French President Emmanuel Macron, British Prime Minister Boris Johnson and German Chancellor Angela Merkel met on Monday during the annual United Nations gathering of world leaders to coordinate their strategy on Iran.

Washington last week imposed a fresh round of sanctions on Iran, including on its central bank and its sovereign-wealth fund.

Differences have also emerged between allies Riyadh and Abu Dhabi, Saudi Arabia's main partner in the military coalition fighting in Yemen, after the UAE reduced its involvement in the war in June and moderated its tone toward Iran.