The oil market is eyeing reports of Iran strikes on Saudi Arabia | Forexlive

A report yesterday that Saudi Arabia was on high alert for an imminent Iranian attacked was generally shrugged off by the market but today, as second round of reports appears to have captured the imagination of traders.

The latest is from the Associated Press:

Saudi Arabia has shared intelligence with American officials that
suggests Iran could be preparing for an imminent attack on the kingdom,
three U.S. officials said Tuesday.

One of the officials described it as a credible threat to happen “soon or within 48 hours.” US officials responded saying “we will not hesitate to act in the defense of our interests and partners in the region.”

In any case, WTI crude oil is up $1.62 to $89.99 despite a generally poor risk picture. Expect further moves after the FOMC decision at 2 pm ET.