Iran says 2 rockets hit tanker off Saudi coast

Blast Sets Iran Tanker On Fire Off Saudi Oil Leaks Into Sea State Media

That ship was repaired in Saudi Arabia and held in the kingdom until July 21 when it was released. Crude prices jumped on the news and industry sources said it could drive up already high shipping costs.

One of the sources said the U.S. was also considering deploying additional air defences to Saudi Arabia.

"Two missiles hit the Iran-owned ship near the Jeddah port city of Saudi Arabia", TV said, quoting the National Iranian Oil Company (NIOC).

"The leak of oil has stopped and the situation is under control", IRNA said.

"All the ship's crew are safe and the ship is stable too", said the NITC, adding those on board were trying to fix the damage.

It turned on its tracking devices late on Friday morning in the Red Sea, putting its location some 80 miles south-west of Jiddah, according to data from MarineTraffic.com.

Troubled economic prospects for 2020 prompted the IEA to reduce its forecast for oil demand growth by 100,000 barrels per day to a "still solid" 1.2 million bpd.

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The Saudi Ports Authority confirmed that an incident involving a tanker had occurred near the port of Jeddah overnight, but was unable to verify if the vessel was Iranian, according to a press officer.

This attack comes weeks after Saudi blamed Iran for the attack on its major oil field, which halved the output of the nation.

Investigations are underway about "this unsafe action" and the results will be announced later, he added.

The US navy's Bahrain-based Fifth Fleet said that they were aware of reports but did not have any further information.

Oil prices surged more than two percent in response to the incident.

Friday's incident could push tensions between Iran and the U.S. even higher, more than a year after President Donald Trump unilaterally withdrew America from the nuclear deal and imposed sanctions now crushing Iran's economy.

Tanker rates have soared to multi-year highs in recent weeks after USA sanctions on units of Chinese shipping giant COSCO and after the attacks on Saudi oil sites. While Yemen's Houthi rebels, who have an on-going war with the kingdom since 2015, claimed the attack, numerous officials and analysts pointed at Tehran.

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