Row between US and Saudi Arabia may see oil skyrocket
Published on 12.10.2018 22:19

The Saudi stock market tumbled more than 6.8 percent after US President Donald Trump warned "severe punishment" over the disappearance of Washington Post journalist Jamal Khashoggi and now there are fears the move could push the oil price closer towards the $100 a barrel mark.

This is just another factor of many which includes the upcoming sanctions against Iran which are likely to destabilize the oil market

Trump said he would soon be talking with the king of Saudi Arabia over the coming days and expected answers as this was something that the world could not accept and he demanded that the Sausi’s must come clean and tell all.

"We're demanding everything. We cannot let this happen, to reporters, to anybody” Mr Trump said

"We are very disappointed to see what's going on. We don't like it and we're going to get to the bottom of it," he added.

Representatives of the Saudi government have already come out fighting, strongly denying any involvement in the journalist’s disappearance.

They also note that any action against their country would be met with swift retaliation which left analysts scratching their heads as to what that may be.

"The kingdom affirms its total rejection of any threats and attempts to undermine it, whether by threatening to impose economic sanctions, using political pressures, or repeating false accusations. The Kingdom also affirms that if it receives any action, it will respond with greater action." They said.

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Andrew Masters

Analyst

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