Understanding global impacts of attacks on Aramco

After Iran-aligned Houthi movement claimed responsibility for the attack on Saudi based oil company Aramco, US Secretary of State Michael Pompeo blamed Iran directly without offering any evidence.

Iran’s Foreign Ministry described Pompeo’s remarks as “blind and fruitless accusations” and ruled out the possibility of a meeting between president Hassan Rouhani, and his counterpart Donald Trump at the United Nations General Assembly (UNGA).

“Neither is such a plan on our agenda, nor will such a thing happen,” Seyed Abbas Mousavi, a spokesman for the Iranian Foreign Ministry told reporters at a Press conference in Tehran.

Trump also said the United States was “locked and loaded” for a potential response to the strikes on the Saudi facilities escalating tensions in the Middle East.

Iran said that it was ready for war as “All American bases and their aircraft carriers were in a distance of up to 2,000 kilometers around Iran and within the range of its missiles,” said commander Amirali Hajizadeh.

Possibility of a war cannot be denied but existing economic sanctions are no less than a war. Saudi oil giant Aramco told Reuters that the attack cut output by 5.7 million barrels per day may rise to $100.

Saudi Arabia supplies more than 7 million barrels of oil to global destinations every day.

Media reports said it would make up for the loss of production by drawing on its stocks which are around 188 million barrels.

The attacks drew set of reactions from across the world. UN Secretary General Antonio Guterres condemned it, The European Union warned that the strikes posed a real threat to regional security, Britain called them a “reckless attempt” to disrupt global oil supplies and France said such actions could only worsen “risk of conflict”.

Iran’s ally Turkey called for the avoidance of “provocative steps”. China’s foreign ministry said it was irresponsible to assign blame for the attack without conclusive facts.

For months Iran has issued veiled threats, saying that if Iran is blocked from exporting oil, other countries will not be able to do so either. It had said Iran will respond with “maximum resistance” to “maximum pressure”

The attack comes after U.S. President Donald Trump said that a meeting with Iranian President Hassan Rouhani was possible at the (UNGA) on which, he took a U-turn now. Tehran ruled out talks until sanctions are lifted.