Iranian oil tanker hit by missiles off the coast of Saudi Arabia
Oil prices jumped by more than 2 percent on Friday after an Iranian oil tanker in the Red Sea was hit by two suspected rockets off the coast of Saudi Arabia, raising the possibility of supply disruptions from a crucial producing region.Oil is still trading at around $54 which is still relatively cheap. West Texas producers could easily ramp up increased production. This looks like retribution against Iran's attack on Saudi production facilities a few weeks ago. Iran is no longer a significant producer of oil because of US sanctions on the Islamic bigot regime.
Iranian Press TV reported that the oil tanker Sinopa, owned by the National Iranian Oil Co, was struck off the coast of the Saudi Arabian city of Jeddah. The ship suffered heavy damage and was leaking oil into the water, unnamed sources told Iran's Students News Agency ISNA.
All crew members of the Iranian oil tanker are safe and the situation of the tanker is stable, Iran's Nour news agency said.
The National Iranian Tanker Company (NITC) said in a statement the hull of the ship sustained two separate explosions about 100km (60 miles) off the Saudi port city of Jeddah.
It said the blasts were "probably caused by missile strikes".