Petrol prices could soar after drone strikes on Saudi oil facilities
Petrol prices could rise to levels not seen since the First Gulf War, after drone strikes on Saudi oil facilities halted the production of 5.7 million barrels a day.
Prices could soar to as much as 7.5p per litre over the coming weeks, according to Goldman Sachs, amid rising tensions in the Gulf.
On Saturday, a swarm of explosive drones attacked the worlds biggest oil processing plant in Saudi Arabia, knocking out more than half of the countrys output and five per cent of the worlds oil production.
Yemens Houthi rebels, who have received backing and support from Iran, say they were responsible for the attack, while Saudi Arabia and the US have laid the blame on Iran.
Saudi officials said Iranian weapons were used, which were not launched from Yemen.
Fears over an all-out war have led to increases in the price of crude, however the AA says any increase in petrol prices would be offset by the strength of the pound against the dollar, as well as increased production levels by the Americans.