Oil resumes gain on rising Gulf tension and Saudi supply doubts

Seoul: Oil resumed gains as tension between the US and Iran ratcheted up following the attacks on Saudi Arabia, while doubts remained over how fast the kingdom would be able restore lost output.

Brent crude surged as much as 1.9% after jumping 6.7% last week, the biggest weekly gain since January. Iran’s Foreign Minister Mohammad Javad Zarif refused to rule out war after the US sent more troops and weapons to Saudi Arabia, according to an interview with CBS. Washington on Friday slapped terror-related sanctions on the Islamic Republic’s central bank in retaliation to the strike on the kingdom’s energy infrastructure.

Saudi Arabia said Iran “unquestionably sponsored” the attacks, which knocked out about 5% of global supply and led to the biggest price spike on record.