Saudi Arabia is shutting down half of its oil production following disruption by drone attacks on two major oil facilities run by state-owned company Aramco.
The attack sparked a huge fire at a processor crucial to global energy supplies.
According to The Wall Streets Journal, the strikes had reduced five million barrels of crude production a day – nearly half the kingdom’s output.
Yemen’s Houthi rebels have claimed responsibility for the attack, saying it was one of their largest attacks ever inside the kingdom, and was carried out in “co-operation with the honourable people inside the kingdom,” the WSJ reported.
A spokesman for the Iran-aligned Houthi group in Yemen, Yahya Sarea, told al-Masirah TV, which is owned by the Houthi movement, that further attacks could be expected in the future.
Saudi and the US have blamed Iran for targeting the kingdom’s oil infrastructure, including the use of mines to damage Saudi oil tankers in the Gulf of Oman in May.
Iran has denied striking Saudi targets or coordinating with Yemeni rebels to hit the kingdom’s oil equipment.