Saturday’s attack on Saudi oil facilities took 5.7 million barrels per day of production offline and pushed oil prices 18% higher. President Trump said the United States is “locked and loaded” for potential retaliation. In response, Iran’s foreign minister threatened “all-out-war” if the United States or Saudi Arabia strikes.
Despite all this turmoil in the marketplace, the economic impact of the attack may not be so drastic over the coming months.
Varsha Koduvayur is a senior research analyst at the Foundation for Defense of Democracies, where she focuses on the Gulf. The opinions expressed in this commentary are her own.