Oil prices rally as rockets damage Iranian oil tanker in Red Sea – reports
Two rockets have hit an Iranian oil tanker near a Saudi Arabian port city, according to state news, sending oil prices climbing.
Oil is spilling into the Red Sea after the reported attack on the Sabity, which Iranian news agency ISNA said belonged to the National Iranian Oil Company (NIOC).
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The incident occurred close to Jeddah, a Saudi port city, and left the Sabity with extensive damage that has seen oil leak into the sea, according to anonymous sources cited by ISNA.
“Experts believe it was a terrorist attack,” ISNA said.
Oil prices rallied on the news, with WTI crude up 2.11 per cent to $54.68 and Brent crude up 2.22 per cent to $60.41.
While the oil tanker began burning early this morning, the vessel’s crew are safe, it is reported.
“Technical experts on board are looking into the reasons behind the explosion but they think it is was a terrorist attack,” the Tasnim news agency said. “The tanker is currently in a stable situation . . . and the crew are safe,” added the agency, which is linked with Iran’s Revolutionary Guards.
The attack comes as tensions rise to dangerous levels in the Gulf amid attacks on vital oil infrastructure in Saudi Arabia.
The US had blamed Iran for drone attacks on Saudi oil facilities that sent oil prices soaring to a record high.
The UK had confiscated an Iranian oil tanker believed to be breaking trade sanctions by sending oil to Assad’s dictatorship in Syria.
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Meanwhile Iran freed a captured British vessel, the Stena Impero, which it had detained in apparent retaliation for the UK’s move.
The US has accused Iran of attempting to sabotage six tankers near the United Arab Emirates over summer. Iranian forces also shot down a US spy drone in June.