Saudi Arabia can boost oil output

Saudi Arabia can boost oil output

"We will find the right way and at the right time to respond to this ..."

The agreement arranged for the easing of global economic sanctions on Iran in exchange for sharp reductions in its nuclear enrichment capabilities and allowing regular worldwide Atomic Energy Agency (IAEA) access to all facilities.

Saudi Arabia applauded Trump's announcement, but said it would seek to develop its own nuclear weapons if Iran does.

The US Treasury Department has indicated that sanctions won't be reimposed immediately, and will take up to 180 days to allow Iranian oil customers and other companies involved in doing business with Tehran to make plans.

The move was hailed by Saudi Arabia, the United Arab Emirates, Bahrain and Yemen.

Iran is the third-biggest producer of crude oil within oil cartel Opec, after Saudi Arabia and Iraq.

That raised worries of a quick rise in oil prices.

US President Donald Trump announced on May 8 that the US was withdrawing from the Joint Comprehensive Plan of Action (JCPOA), an worldwide agreement reached in 2015 by Iran, the United States, Russia, France, China, Great Britain, Germany and the EU.

"All parties have an interest to act with restraint and wisdom in the face of this situation and to try to resolve conflicts through dialogue", its foreign ministry said. The International Atomic Energy Agency has so far verified Iran's adherence to the deal.

"Whether or not (the Iranians) go for a military programme, you're going to get a nuclear race in the Middle East", said Dorsey.

An official spokesman for the energy ministry said Tuesday that following the USA decision to withdraw from the nuclear agreement with Iran, Saudi Arabia "would work with major producers within and outside OPEC, as well as major consumers to mitigate the impact of any potential supply shortages".

But Saudi Arabia has enough oil production capacity - now at 12 million barrels per day (bpd) - to maintain oil market stability, the source added.

Saudi Arabia announced on May 9 that it will be monitoring the effect of the United States withdrawal from the JCPOA (also known as the Iran deal) on the crude oil market, as Iran's market share could now decrease.

"These missiles are Iranian manufactured and delivered to the Houthis".

Iran's actions amount to a "declaration of war", the Saudi foreign minister warned on Wednesday, after two ballistic missiles were fired toward Riyadh by Tehran-backed Houthi militias.