The United States of America has pinned blame on Iran for an attack on a Saudi Arabia oil installation managed by state-run oil company ARAMCO.

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Secretary of State Mike Pompeo rejected the claim by Yemen-based Houthi rebels that they were responsible for the attack.

Pompeo said that there was no evidence to suggest that the attack emanated from Yemen.

"Tehran is behind nearly 100 attacks on Saudi Arabia while Rouhani and Zarif pretend to engage in diplomacy. Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world’s energy supply. There is no evidence the attacks came from Yemen," he tweeted on Saturday.

The Saudi Arabia government through the Ministry of Energy said that the drone strike on its oil facility had resulted in a significant reduction in output.

Observers of the oil market say that oil prices were affected by the attack.

Houthi rebels who are locked in an ongoing military struggle against the Saudi's in Yemen were quoted by the New York Times saying that they were behind the attack.

Tensions continue to flare in the Persian Gulf as the United States and Iran trade strong words.

President Donald Trump unravelled a nuclear deal reached between Iran and the US during the Obama administration.

Trump, according to a White House statement, called the Saudi crown prince Mohamed Bin Salman to express his support for the Saudis. 

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