>> A turbulent time for oil prices Monday. That after Saudi Arabia and key allies cut off almost all diplomatic ties with Qatar. Riyadh accusing its gulf Arab rival with supporting terrorism. They say it backs Iran and Islamist groups. Reuters breaking news columnist Andy Critchlow says markets see rising risk ahead.
>> The region that's affected by this produces about a fifth of the world's oil demand. So that's about 17, 18 million barrels of crude. That will go through the Strait of Hormuz. It's a very fraught area for so much energy to be locked in.>> Benchmark Brent Crude jumping more than 1% to almost $50.50 before falling back.
A similar story for US oil. Washington now urging the Gulf countries to patch up their differences. But some think the new US administration may have fueled the dispute.>> It's difficult to believe that the Saudis would have been confident enough to take this on themselves if President Trump hadn't gone to the kingdom, given them very much his seal of approval.
They have been emboldened by his support.>> The OPEC club of oil producing nations has been trying to curb production to boost prices. Their daily output of crude down by 1.8 million barrels as a result. But those efforts have been counteraffected by a big rise in US production.
Now a falling out in the Gulf may yet do the job of raising prices instead.