Attacks on Saudi Oil Fields Won’t Help Iran

US oil producers will benefit more than Iran should there be more attacks

Smoke billows from an Aramco oil facility in Abqaiq about 37 miles southwest of Dhahran in Saudi Arabia's eastern province on September 14, 2019. President Trump on Monday said he considered a lethal counterstrike to be appropriate for the attack, which he said was likely from Iran. AFP/Getty Images

The September 14^th attacks on Saudi Arabian oil fields resulted in an outright oil panic. Crude prices immediately spiked as half of Saudi Arabia’s oil production came to a halt, dropping it from about 12 billion barrels per day down to about six. But within a couple of days, ARAMCO, the Saudi oil company that owns the fields, was already repairing the damage.

The early speculation is that Iran was behind the attacks: Reeling from American sanctions, the attack would gain Iran much needed oil revenues enhanced by the rise in oil prices. Tellingly, the price rise was short-lived. What’s more, Iran has denied any and all involvement. In fact, the Houthis in Yemen are claiming full responsibility.

Assigning Blame

That explanation, however, isn’t universally accepted. U.S. officials such as Secretary of State Mike Pompeo claim the accuracy and travel patterns of the attacks, which apparently also involved cruise missiles, are beyond the scope of the Houthis. American experts also claim the ability of the drones and cruise missiles to evade U.S.-supplied Saudi air defenses and successfully reach their targets points to Iranian involvement as well.