Analysts at consulting group Wood Mackenzie said it would be weeks before most output from Saudi Arabia is restored, but the Middle Eastern nation may face challenges finding suitable kinds of crude to make up the shortage.
President Donald Trump revealed on Wednesday afternoon that his administration would soon announce its response to aerial strikes on oil facilities in Saudi Arabia, an attack which the administration said was sponsored by Tehran.
Iran long has denied arming the Houthis, though U.N. experts, Western nations and the Saudi-led coalition have pointed to weapons recovered on the battlefield that appear to have come from the Islamic Republic.
Pompeo said flight patterns suggested the attack did not come from the south, which is the direction of Yemen, and that the US intelligence community has "high confidence" the weapons used were not in the Houthis' arsenal.
On Wednesday, the group gave details of the type of drones it said were used in the September 14 attack and warned that the United Arab Emirates was also in its sights.
In Riyadh, Malki showed off what was said to be a delta wing of an Iranian drone along with other weapons debris.
The White House and the Treasury Department did not immediately respond to requests to comment on what the sanctions could be.
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"I have just instructed the Secretary of the Treasury to substantially increase Sanctions on the country of Iran!" he tweeted Wednesday.
Erdogan hints at Saudi responsibility over oil attacks
Trump had reportedly been hoping for a dramatic encounter with Iranian President Hassan Rouhani at next week's UN General Assembly in NY. Iran also seized a British-flagged oil tanker and another based in the United Arab Emirates. Iran denies any connection to the attacks on tankers.
Iran's foreign ministry has also rejected blame, calling American and Saudi assurances they have proof of Tehran's involvement "baseless and untrue".
IRNA separately reported that Iran's delegation to the annual UN General Assembly meeting had not left Iran because the U.S. has yet to issue the necessary visas.
Following the strikes on Saudi Arabia's Aramaco oil facilities, Secretary of State Mike Pompeo flew to Jeddah, Saudi Arabia on Wednesday. "There's the ultimate option, and there are options a lot less than that", Trump said while standing alongside his new national security adviser, Robert O'Brien. "If it was up to me, I'd let them come".
As the host of the UN's headquarters, the United States is required to offer world leaders and diplomats visas to attend meetings there.
'They condemned the attacks and discussed the need for a united diplomatic response from worldwide partners.
The 2015 Obama-era deal was originally agreed upon by Iran, China, France, Germany, Russia, the United Kingdom and the U.S.
"Frogmen, drones, third-party proxies and cyberattack are all capabilities Iran can use to turn up the heat", Hultquist said.
"Learn lessons from this warning and consider that there could be a war in the region", he added.
Nearly 50000 UAW Employees Strike Against General Motors
Workers at GM are reading tea leaves and official press releases, just like the media, and that's no way to win a massive strike. GM did have a 54-day strike at a key plant in Flint, Michigan, in 1998 that effectively shut down most of its assembly plants.
Robert O'Brien replaces John Bolton as Trump's national security adviser
O'Brien, Trump's fourth national security advisor, was chosen from a list of five candidates Trump said were under consideration. He has also been the only US official consistently working on releasing Americans imprisoned in Iran .
Iran's supreme leader rules out negotiations with U.S.
The crisis stems from President Donald Trump's decision to pull the US out of the 2015 nuclear deal between Iran and world powers. One of the U.S. government's satellite images showing damage to the Abqaiq oil field in eastern Saudia Arabia.