U.S. lawmakers blast Iran, wary of war, after Saudi oil attack

By Patricia Zengerle

WASHINGTON (Reuters) – Members of the U.S. Congress blasted Iran after the attack on Saudi Arabian oil facilities, but expressed wariness about U.S. military action, especially before they have a clearer picture of who was behind it.

President Donald Trump said the United States was “locked and loaded” to hit back after Saturday’s attack, which knocked out more than half of Saudi Arabia’s oil production and damaged the world’s biggest crude processing plant.

Iran denied U.S. accusations it was to blame and said it was ready for “full-fledged war.”

U.S. lawmakers, especially Trump’s fellow Republicans, were quick to blame Tehran.

Mitch McConnell, the Senate’s Republican majority leader, called it “a brazen attack” with significant implications for the global energy market and said he welcomed Trump’s preparation to potentially release oil from the Strategic Petroleum Reserve to stabilize markets if necessary.

“I hope our international partners will join us in imposing consequences on Iran for this reckless destabilizing attack,” McConnell said as he opened the Senate.

Many lawmakers stressed that Congress, not the president, has the right to declare war and warned against any quick military action.

Congress, with backing from both Republicans and Democrats, has passed – but Trump has vetoed – four bills seeking to push back against Trump’s strong support for the Saudi government, despite its human rights record and steep civilian casualties in the war in Yemen.

Senate aides said the administration was expected to begin providing classified briefings on Saturday’s attack for congressional staff and members as soon as Monday.

Senator Chris Murphy, a Democrat who is on the Senate Foreign Relations Committee, noted that the United States has long been wary of getting involved in conflicts between nations in the Middle East. He noted that Washington does not have a defense treaty with Riyadh.

“Why should the United States get dragged into a conflict that has more to do with Saudi and Iranian power in the Middle East than American power?” Murphy, a critic of Saudi Arabia on rights issues including its role in the Yemen war, told Reuters.

Senator Jim Risch, the Republican chairman of the foreign relations panel, warned of U.S. retaliation in case of an attack on U.S. troops.

“Iran should not underestimate the United States’ resolve,” he said. “Any attack against U.S. forces deployed abroad must be met with an overwhelming response – no targets are off the table.”

Republican Senator Rand Paul, another foreign relations committee member, said on CNN that any attack on Iran would constitute a “needless escalation” of war.

(Reporting by Patricia Zengerle; Editing by Sandra Maler)

Biggest oil price surge since 1991 as ‘locked and loaded’ U.S. points finger at Iran for attack

By Rania El Gamal and Aziz El Yaakoubi

DUBAI (Reuters) – An attack on Saudi Arabia that shut 5% of global crude output triggered the biggest surge in oil prices since 1991, after U.S. officials blamed Iran and President Donald Trump said Washington was “locked and loaded” to retaliate.

The Iran-aligned Houthi movement that controls Yemen’s capital claimed responsibility for the attack, which damaged the world’s biggest crude oil processing plant. Iran denied blame and said it was ready for “full-fledged war”.

Two sources briefed on state oil company Saudi Aramco’s operations told Reuters it might take months for Saudi oil production to return to normal. Earlier estimates had suggested it could take weeks.

Oil prices surged by as much as 19% before coming off peaks. The intraday jump was the biggest since the 1991 Gulf War. [O/R]

Prices eased after Trump announced that he would release U.S. emergency supplies and producers said there were enough stocks stored up worldwide to make up for the shortfall. But traders still spoke of a long-term price increase as markets absorb the proof that global supply can be so sharply hit.

“There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!” Trump said on Twitter on Sunday.

U.S. Energy Secretary Rick Perry pinned the blame squarely on Iran for “an attack on the global economy and the global energy market”.

“The United States wholeheartedly condemns Iran’s attack on Saudi Arabia and we call on other nations to do the same,” he said in a speech to an annual meeting in Vienna of the U.N. nuclear watchdog IAEA. He added that he was confident the oil market “is resilient and will respond positively”.

While Iran has denied blame for the attacks, its Yemeni allies have promised more strikes to come. Houthi military spokesman Yahya Sarea said the group carried out Saturday’s pre-dawn attack with drones, including some powered by jet engines.

“We assure the Saudi regime that our long arm can reach any place we choose and at the time of our choosing,” Sarea tweeted. “We warn companies and foreigners against being near the plants that we struck because they are still in our sights and could be hit at any moment.”

U.S. officials say they believe that the attacks came from the opposite direction, possibly from Iran itself rather than Yemen, and may have involved cruise missiles. Wherever the attacks were launched, however, they believe Iran is to blame.

“There’s no doubt that Iran is responsible for this. No matter how you slice it, there’s no escaping it. There’s no other candidate,” a U.S. official said on Sunday.

Saudi Arabia and Iran have been enemies for decades and are fighting a number of proxy wars, including in Yemen where Saudi forces have been fighting against the Houthis for four years.

Tension in the oil-producing Gulf region has dramatically escalated this year after Trump imposed severe U.S. sanctions on Iran aimed at halting its oil exports altogether.

THREATS

For months Iranian officials have issued veiled threats, saying that if Tehran is blocked from exporting oil, other countries will not be able to do so either. However, Iran has denied a role in specific attacks, including bombings of tankers in the Gulf and previous strikes claimed by the Houthis.

Foreign Ministry spokesman Abbas Mousavi called the U.S. accusations of Iranian involvement in Saturday’s attacks “unacceptable and entirely baseless”.

Iran said on Monday it had seized a vessel accused of smuggling diesel fuel to the United Arab Emirates. Tehran has long fought against smuggling of its subsidized fuel.

Russia and China said it was wrong to jump to conclusions about who was to blame for the attack on Saudi Arabia.

“Proposals on tough retaliatory actions, which appear to have been discussed in Washington, are even more unacceptable,” Russia’s Foreign Ministry said in a statement.

Britain – Washington’s close ally but wary of its hardline Iran policy – stopped short of ascribing blame but described the assault as a “wanton violation of international law”.

Washington has imposed its “maximum pressure” strategy on Iran since last year when Trump pulled out of an international deal that gave Tehran access to world trade in return for curbs on its nuclear program.

U.S. allies in Europe oppose Trump’s strategy, arguing that it provides no clear mechanism to defuse tensions, creating a risk that the foes could stumble into war.

Trump has said his goal is to force Iran to negotiate a tougher agreement and has left open the possibility of talks with President Hassan Rouhani at an upcoming U.N. meeting. Iran says there can be no talks until Washington lifts sanctions. Its foreign ministry said on Monday Rouhani would not meet Trump.

Officials in big energy-exporting countries were eager to assert that global markets could cope with the Saudi outage.

“We have spare capacity. There are volumes we can deal with as an instant reaction,” the energy minister of the United Arab Emirates, Suhail al-Mazrouei, told reporters in Abu Dhabi.

Russian Energy Minister Alexander Novak told reporters there was enough oil in commercial stockpiles to cover the shortfall.

The giant Saudi plant that was struck cleans crude oil of impurities, a necessary step before it can be exported and fed into refineries. The attack cut Saudi output by 5.7 million barrels a day, or around half.

Saudi Arabia is not only the world’s biggest oil exporter, it has a unique role in the market as the only country with enough spare capacity to increase or decrease its output by millions of barrels per day, keeping the market stable.

Big countries such as the United States and China have reserves designed to handle even a major outage over the short term. But a long outage would make markets subject to swings that could potentially destabilize the global economy.

(Reporting by Ghaida Ghantous, Rania El Gamal, Aziz El Yaakoubi, Asma El Sharif, Saed Azhar Hadeel Al Sayegh and Dubai bureau, Karin Strohecker and Dmitry Zhdannikov in London, Michael Martina in Beijing, Vladimir Soldatkin in Moscow, Roberta Rampton and Arshad Mohammed in Washington; Writing by Peter Graff; Editing by Mark Heinrich)

U.S. blames Iran for Saudi oil attack, Trump says ‘locked and loaded’

A satellite image shows an apparent drone strike on an Aramco oil facility in Abqaiq, Saudi Arabia September 14, 2019. Planet Labs Inc/Handout via REUTERS

By Roberta Rampton and Arshad Mohammed

WASHINGTON (Reuters) – U.S. President Donald Trump said on Sunday the United States was “locked and loaded” for a potential response to the attack on Saudi Arabia’s oil facilities, after a senior U.S. administration official said Iran was to blame.

Trump also authorized the use of the U.S. emergency oil stockpile to ensure stable supplies after the attack, which shut 5% of world production and sent crude prices soaring more than 19% in early trade on Monday, before moderating to show a 10% gain.

“There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!” Trump said on Twitter.

Earlier in the day, a senior U.S. official told reporters that evidence from the attack, which hit the world’s biggest oil-processing facility, indicated Iran was behind it, instead of the Yemeni Houthi group that had claimed responsibility.

U.S. Secretary of State Mike Pompeo also said there was no evidence the attack came from Yemen, where a Saudi-led coalition has been battling the Houthis for over four years in a conflict widely seen as a proxy war between Saudi Arabia and Shi’ite Muslim rival Iran.

“Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world’s energy supply,” Pompeo said.

Iranian Foreign Ministry spokesman Abbas Mousavi dismissed the U.S. allegations that it was responsible was “pointless”. A senior Revolutionary Guards commander warned the Islamic Republic was ready for “full-fledged” war.

“All American bases and their aircraft carriers in a distance of up to 2,000 kilometers around Iran are within the range of our missiles,” the semi-official Tasnim news agency quoted Commander Amirali Hajizadeh as saying.

Tensions between Washington and Tehran were already running high because of a long-running dispute between the two nations over Iran’s nuclear program that led the United States to impose sweeping sanctions.

Oil prices surged as much as 19% in early Asian trade on Monday on worries over global supply and soaring tensions in the Middle East.

Brent crude posted its biggest intra-day percentage gain since the start of the Gulf War in 1991.

State oil giant Saudi Aramco said the attack on Saturday had cut output by 5.7 million barrels per day.

The U.S. official, who asked not to be named, said on Sunday there were 19 points of impact in the attack on Saudi facilities and evidence showed the launch area was west-northwest of the targets – not south from Yemen.

The official added that Saudi officials indicated they had seen signs that cruise missiles were used in the attack, which is inconsistent with the Iran-aligned Houthi group’s claim that it conducted the attack with 10 drones.

“There’s no doubt that Iran is responsible for this. No matter how you slice it, there’s no escaping it. There’s no other candidate,” the official told reporters.

Riyadh has accused Iran of being behind previous attacks on oil-pumping stations and the Shaybah oil field, charges that Tehran denies, but has not blamed anyone for Saturday’s strike. Riyadh also says Tehran arms the Houthis, a charge both deny.

Richard Nephew, a program director at Columbia University’s Center on Global Energy Policy, said if Iran was responsible for the attack, it may be as retribution for U.S. sanctions.

“They are making decisions about whether and how to respond to what they see as a massive attack on their interests from the U.S. via sanctions by attacking U.S. interests in turn, and those of U.S. partners they believe are responsible for U.S. policy,” he said.

Aramco gave no timeline for output resumption. A source close to the matter told Reuters the return to full oil capacity could take “weeks, not days”.

Riyadh said it would compensate for the damage at its facilities by drawing on its stocks, which stood at 188 million barrels in June, according to official data.

Trump said he had “authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied.”

CALLS FOR RESTRAINT

Consultancy Rapidan Energy Group said images of the Abqaiq facility after the attack showed about five of its stabilization towers appeared to have been destroyed, and would take months to rebuild – something that could curtail output for a prolonged period.

“However Saudi Aramco keeps some redundancy in the system to maintain production during maintenance,” Rapidan added, meaning operations could return to pre-attack levels sooner.

The Saudi bourse closed down 1.1% on Sunday, with banking and petrochemical shares taking the biggest hit. Saudi petrochemical firms announced a significant reduction in feedstock supplies.

“Abqaiq is the nerve center of the Saudi energy system. Even if exports resume in the next 24 to 48 hours, the image of invulnerability has been altered,” Helima Croft, global head of commodity strategy at RBC Capital Markets, told Reuters.

Some Iraqi media outlets said the attack came from there. Baghdad denied that on Sunday and vowed to punish anyone using Iraq, where Iran-backed paramilitary groups wield increasing power, as a launchpad for attacks.

Kuwait, which borders Iraq, said it was investigating the sighting of a drone over its territory and coordinating with Saudi Arabia and other countries.

U.N. Secretary-General Antonio Guterres condemned Saturday’s attacks and called on all parties to exercise restraint and prevent any escalation. The European Union warned the strikes posed a real threat to regional security, and several nations urged restraint.

The attack came after Trump said a meeting with Iranian President Hassan Rouhani was possible at the U.N. General Assembly in New York this month. Tehran ruled out talks until sanctions are lifted.

But Trump appeared on Sunday to play down the chances he might be willing to meet with Iranian officials, saying reports he would do so without conditions were not accurate.

As recently as last Tuesday, Pompeo said Trump “is prepared to meet with no preconditions”.

Saudi de facto ruler Crown Prince Mohammed bin Salman told Trump that Riyadh was ready to deal with “terrorist aggression”. A Saudi-led coalition has responded to past Houthi attacks with airstrikes on the group’s military sites in Yemen.

The conflict has been in military stalemate for years. The Saudi alliance has air supremacy but has come under scrutiny over civilian deaths and a humanitarian crisis that has left millions facing starvation.

(Reporting by Roberta Rampton and Arshad Mohammed; Additional reporting by Rania El Gamal and Parisa Hafezi, Saeed Azhar and Hadeel Al Sayegh in Dubai, David Shepardson and Timothy Gardner in Washington, William James in London, John Irish in Paris, Alex Lawler, Julia Payne and Ron Bousso in London, Robin Emmott in Brussels and Devika Krishna Kumar and Michelle Nichols in New York; Writing by Ghaida Ghantous and Richard Valdmanis; Editing by William Maclean, Peter Cooney & Simon Cameron-Moore)

Putin: U.S. in position to deploy new cruise missile in Europe

Russian President Vladimir Putin attends a joint news conference with Finnish President Sauli Niinisto in the Presidental Palace in Helsinki, Finland, August 21, 2019. Markku Ulander/Lehtikuva/via REUTERS

HELSINKI (Reuters) – President Vladimir Putin said on Wednesday that the United States was in a position to deploy a new land-based cruise missile in Romania and Poland and that Russia considered that a threat which it would have to respond to.

The Pentagon said on Monday it had tested a conventionally-configured cruise missile that hit its target after more than 500 km (310 miles) of flight, its first such test since the demise of a landmark nuclear pact this month.

Putin, who was speaking during a visit to Helsinki, said that Washington could potentially use its launch systems in Romania and Poland to fire the missile and that Russia would have to respond in an appropriate and reciprocal manner.

(Reporting by Olesya Astakhova; Writing by Tom Balmforth; editing by Andrew Osborn)

Putin, before election, unveils new nuclear weapons to counter West

Russian President Vladimir Putin addresses the Federal Assembly, including the State Duma parliamentarians, members of the Federation Council, regional governors and other high-ranking officials, in Moscow, Russia March 1, 2018. REUTERS/Maxim Shemetov

By Andrew Osborn and Polina Ivanova

MOSCOW (Reuters) – President Vladimir Putin unveiled an array of new nuclear weapons on Thursday, in one of his most bellicose speeches in years, saying they could hit almost any point in the world and not be intercepted.

Speaking weeks before an election he is expected to win, Putin also said that a nuclear attack on any of Moscow’s allies would be regarded as an attack on Russia itself and draw an immediate response.

Putin, who polls indicate should be easily re-elected on March 18, backed his tough rhetoric with video clips of some of the new missiles he was talking about, which were projected on a giant screen behind him at the conference hall in central Moscow where he was addressing Russia’s political elite.

“They have not succeeded in holding Russia back,” said Putin, referring to the West.

“Now they need to take account of a new reality and understand that everything I have said today is not a bluff.”

Among the new weapons that Putin said were either in development or ready: a new intercontinental ballistic missile, a small nuclear warhead that could be attached to cruise missiles, underwater nuclear drones, a supersonic weapon and a laser weapon.

The audience, made up of Russian lawmakers and other leading figures, frequently stood up and applauded his presentation, which culminated with the Russian national anthem being played.

NATO MEASURES “USELESS”

Putin, who has dominated his country’s political landscape for the last 18 years and often used anti-Western rhetoric to mobilize support, said the technological advances meant that NATO’s build-up on Russia’s borders and the roll-out of a U.S. anti-missile system would be rendered useless.

“I hope that everything that was said today will sober up any potential aggressor,” said Putin.

“Unfriendly steps towards Russia such as the deployment of the (U.S.) anti-missile system and of NATO infrastructure nearer our borders and such like, from a military point of view, will become ineffective.”

Steps to contain Russia would also become unjustifiably expensive and pointless, he forecast.

The Russian leader also voiced concerns about a new U.S. nuclear doctrine, saying that Russia’s own doctrine was defensive and only envisaged the use of nuclear weapons in response to an attack.

Russia has repeatedly said it is keen to hold talks with the United States about the balance of strategic nuclear power.

“We will view any use of nuclear weapons against Russia or its allies, be it of small, medium or any force, as a nuclear attack on our country,” said Putin.

“Our response will be immediate. Nobody should have any doubts about that.”

(Additional reporting by Andrey Ostroukh, Maria Tsvetkova, Vladimir Soldatkin, Polina Devitt, Katya Golubkova, Polina Nikolskaya and Denis Pinchuk; Writing by Andrew Osborn; Editing by Kevin Liffey)

Japanese capital holds first North Korean missile attack drill

Participants run during an anti-missile evacuation drill at the Tokyo Dome City amusement park in Tokyo, Japan January 22, 2018.

TOKYO (Reuters) – Tokyo held its first missile evacuation drill on Monday with volunteers taking cover in subway stations and other underground spaces that would double as shelters for the Japanese capital in the event of a North Korean missile strike.

The choreographed evacuations at a fair ground and park ringing the Tokyo Dome baseball stadium involved around 300 volunteers.

Small groups of protesters scuffled with police as they demonstrated against what they criticized as a war game that fanned public fear.

While hope grows that North Korea’s participation in next month’s Winter Olympics in South Korea may help defuse tension in the region, Japan is escalating efforts to prepare its citizens for a possible war.

Tokyo believes the threat posed by Pyongyang’s ballistic missile and nuclear weapons development is deepening.

“A missile from North Korea would arrive in less than 10 minutes and the first alert would come about three minutes after launch, which gives us only around five minutes to find shelter,” Hiroyuku Suenaga, a Japanese government official, told volunteers after the Tokyo exercise.

Small Japanese towns and villages have conducted similar drills as North Korea has pushed ahead with its missile and nuclear weapons programs.

North Korea conducted its most recent and biggest nuclear bomb test in September and has tested dozens of ballistic missiles. The latest missile test in November reached an altitude of about 4,475 km (2,780 miles) and flew 950 km (590 miles), passing over Japan before splashing into waters in Japan’s exclusive economic zone.

Pyongyang says its weapons programs are a necessary defense against a possible U.S. invasion.

Amid public concern over the possibility of more missile launches, Japanese public broadcaster NHK issued a false launch alarm urging people to take shelter six days ago. That came days after a similar false alert caused panic across Hawaii.

“I am not that worried about North Korea, if something happened that would be frightening,” said Hidenobu Kondo, one of the volunteer evacuees. However, the 50-year-old company employee said the drill would not be of much use in the event of real attack.

“If I was at work it might be easy to evacuate, but If I was outside somewhere it would be more difficult,” Kondo said.

Japan’s defenses against a ballistic missile strike include Aegis destroyers in the Sea of Japan armed with interceptor missiles designed to destroy warheads in space. PAC-3 Patriot missile batteries represent a last line of defense against warheads that can plunge to their targets at several kilometers per second.

Japan has also decided to buy two land-based Aegis batteries and cruise missiles that could strike North Korean missile sites.

(Reporting by Tim Kelly; Editing by Paul Tait)