Iran claims right to respond to 'unacceptable' US sanctions

Oil Rallies as Mideast Tensions Flare Over Saudi Pipeline AttackMore

Oil Rallies as Mideast Tensions Flare Over Saudi Pipeline AttackMore

Recent days have seen allegations of sabotage targeting oil tankers off the coast of the United Arab Emirates, a drone attack by Yemen's Iranian-allied Houthi rebels, and the dispatch of USA warships and bombers to the region. Yemen's Health Ministry said the strikes killed six people, including four children, and wounded more than 40.

Saudi Arabia has reopened a key oil pipeline, an official said Thursday, after it was shut down by drone attacks claimed by Iran-aligned Yemen rebels.

"The cabinet affirms that these acts of terrorism and sabotage... not only target the kingdom but also the security of world oil supplies and the global economy", Riyadh said after a meeting chaired by King Salman.

"Pakistan strongly condemns the drone attacks on oil pumping stations in Eastern Province of Saudi Arabia", an FO statement said. There were casualties, including civilians, the residents said without providing details.

A damaged Andrea Victory off the Port of Fujairah.

Gargash said the probe would be concluded within days.

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In an hour-long briefing, the UAE's minister of state for foreign affairs, Anwar Gargash, struck a cautious tone, stressing his country is "very committed to deescalation" and would exercise "caution and prudence" in a "brittle, difficult" situation.

Iranian oil is a lucrative buy for refiners as the Persian Gulf nation provides 60 days of credit for purchases, terms not available from suppliers of substitute crudes - Saudi Arabia, Kuwait, Iraq, Nigeria, and the US.

"We have all the supplies tied up and I think globally crude will be readily available but it is hard to say what the impact will be on price", Singh added.

Yemen's Houthi rebels, who are at war with Saudi Arabia and are believed by the West to receive weapons from Iran, said they launched seven drones targeting vital Saudi installations. Officials are still trying to determine who was behind the attacks and how they were carried out - but the incident comes after the US warned ships that "Iran or its proxies" could be targeting maritime traffic in the region.

OPEC giant Saudi Arabia now pumps around 10 million barrels per day, of which around seven million are exported - mostly through the Strait of Hormuz.

On Wednesday, the U.S. State Department ordered all nonessential government staff to leave Iraq, and Germany and the Netherlands both suspended their military assistance programs in the country in the latest sign of tensions.

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The US deployed an aircraft carrier, a Patriot missile battery, B-52 and F-15 aircrafts, and amphibious dock in response to an unspecified threat from Iran.

President Donald Trump on Wednesday predicted that Iran would "soon" want to negotiate, denying discord in the White House over moves that critics say could lead to war. "I'm sure that Iran will want to talk soon".

India, Iran's top client after China, has close diplomatic ties with Iran but wants to work closely with the United States.

Iran would be held accountable for attacks by proxy forces, said the United States that along with Arab allies treats the Yemeni Houthis as Iranian proxies.

US President Donald Trump past year withdrew from the 2015 nuclear deal between Iran and world powers and revived a range of sanctions against the Persian Gulf nation.

Iran recently threatened it might resume higher enrichment by July 7, beyond the level permitted by the current deal between Tehran and world powers.

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