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The Drone Attack on Oil and the Larger Iran Problem

The Drone Attack on Oil and the Larger Iran Problem

View of the pumpjack in the oil well of the oil field. The arrangement is commonly used for onshore wells producing little oil. Pumpjacks are common in oil-rich areas.

When a series of drones were used to attack a key Saudi oil facility over the weekend, the impact on oil production was noted by global markets.  Oil prices spiked as the attack was believed to impact more than half of Saudi Arabia’s daily exports.

Yemen’s Houthi rebels claimed responsibility, but U.S. Secretary of State Mike Pompeo placed the blame squarely on Tehran as the rest of the world awaits further evidence.  Iran has denied it is behind the attack. 

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