Iran claims one of its oil tankers was hit by two missiles

The agency claimed the explosion had set the oil tanker on fire near the Saudi port city of Jeddah in what they called a

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Two explosions hit the Iranian oil tanker Sabity, which is operated by the National Iranian Oil Company (NIOC), near the Saudi port city of Jeddah, Mehr News reported.

US officials have announced smaller troop increases to help boost defenses in Saudi Arabia, the world's leading oil producer and a longtime USA ally, in recent months. Oil prices spiked by 2% on the news.

Iranian officials warned for weeks that if they could not sell their oil, neither would anyone else in the region.

An explosion has damaged an Iranian oil tanker travelling through the Red Sea near Saudi Arabia, according to local media sources.

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"Fortunately, the tanker's crew members have not suffered any injuries and the vessel is in a stable condition", he added.

The agency said the alleged attack happened to the Sabiti, which belongs to NIOC, which was stationed near the Saudi port city of Jeddah.

The tanker was carrying about 1 million barrels of oil when the attack occurred, according to an analysis from data firm Refinitiv.

The ship was reportedly hit twice within 30 minutes and the National Iranian Tanker Company first said the missiles probably came from Saudi Arabia before later withdrawing the claim. It did not say whom Iranian officials suspect of launching the missiles. The incident follows strikes on key Saudi oil installations in September and attacks on tankers in the Gulf area in May and June.

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Investigations are underway about "this risky action" and the results will be announced later, he added.

The US Navy's Fifth Fleet is aware of media reports on the vessel, but said it does not have any further information, a spokesman said on Friday.

Global benchmark Brent crude futures LCOc1 rose as much as 2.3% to $60.46 a barrel and were at $60.13 per barrel, up $1.02, by 0648 GMT. The U.S. has blamed Iran for the attack, something denied by Tehran. He did not elaborate. Iran denies the accusation. However, the oil spill has been controlled.

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