US has also issued additional forces on Prepare To Deploy Orders (PTDO) for two Patriot Batteries and a Terminal High Altitude Area Defense system (THAAD). The USA on Wednesday also imposed sanctions on Chinese firms and individuals for transporting Iranian oil. In what may exacerbate the tensions in the Persian Gulf and add to the growing uncertainities in global energy markets, the Donald Trump administration plans to deploy an additional patriot missile battery, four sentinel RADARS and additional personnel to Saudi Arabia.
Iran’s recent warnings to Saudi Arabia are “ridiculous” and “laughable” Saudi minister of state for foreign affairs Adel al-Jubeir told CNBC amid ongoing investigations by the kingdom tying Iran to a major attack on its oil facilities.
Oil prices edged higher in early Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia’s pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend. Brent crude futures rose 8 cents to $63.68 a barrel by 0139 GMT while U.S. West Texas Intermediate (WTI) crude was up 12 cents to $58.23 a barrel.
Shares of oil marketing companies rose by up to 3.6% on Wednesday on easing crude prices. Shares of Bharat Petroleum Corporation Limited jumped 3.65%, Hindustan Petroleum Corporation Limited gained 3.64% and Indian Oil Corporation rose 2.68% on the BSE.
Indian equity indices came under sharp selling pressure for the second consecutive day on Tuesday and wiped out all previous week’s gains.
A predawn attack on the heart of Saudi Arabia’s energy industry knocked out half of the country’s oil production and raised the prospect of retaliation. The U.S., without providing evidence, blamed the strike by a swarm of armed drones on the kingdom’s arch rival Iran. Iran has denied the allegation, but Yemen’s Iran-backed Houthi rebels, who have been battling a Saudi-led coalition for more than four years, have claimed responsibility. What are Crown Prince Mohammed bin Salman’s options and which is he likely to deploy?
The Indian rupee and government bond prices fell on Monday as a surge in global crude prices following a drone attack on Saudi Arabia’s oil facilities stoked inflationary and fiscal slippage concerns.