This photo released by the official news agency of the Iranian Oil Ministry, SHANA, shows Iranian oil tanker Sabiti traveling through the Red Sea Friday, Oct. 11, 2019. Two missiles struck the Iranian tanker Sabiti traveling through the Red Sea off the coast of Saudi Arabia on Friday, Iranian officials said, the latest incident in the region amid months of heightened tensions between Tehran and the U.S. (SHANA via AP)

Oil price jumps after missiles hit Iranian tanker

October 11, 2019 - 5:16 am

LONDON (AP) — Energy prices are up after an apparent attack on an Iranian tanker revived concerns about instability in the oil-rich region.

The international benchmark for oil rose 1.6% to $60.05 a barrel Monday after Iranian officials said two missiles had hit a tanker off the coast of regional rival Saudi Arabia.

A bombing of Saudi Arabia's largest oil processing facility this summer caused a 10% spike in the oil price, but markets calmed as authorities quickly restored output. The U.S. blamed the attack on Iran, who deny any involvement.

The International Energy Agency notes in a report that while tensions in the Middle East can create volatility, high levels of oil reserves act as a "big insurance policy." It also says that slowing economic growth is weighing on energy prices.

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