There is increasing evidence Saudi Arabia was behind the disappearance of Jamal Khashoggi, a US resident who has been a critic of the crown prince.
After the US threatened sanctions against Saudi Arabia, the oil-rich country seemed to hint at its ability to hit back through the energy market.
Analysts see a 1973-style embargo as unlikely, but warn oil prices could hit triple-digits if tensions escalate.
Saudi Arabia, the largest crude exporter in the world, is set to play an increasingly crucial role in maintaining global supply when US sanctions against Iran take effect next month. Following requests from the Trump administration, Riyadh agreed to increase output by a "measurable" amount earlier this year.
While analysts doubt Riyadh would go as far as an energy embargo now, the government has used oil resources to exert political pressure before. During the 19 70s, a Saudi-led coalition slashed oil exports to the US in protest of Washington's support of Israel in the Yom Kippur War. .
Caroline Bain, chief commodities economist at Capital Economics, agrees Riyadh would be reluctant to go that route this time around. But she said energy costs could nearly double by the end of the year if it did come to that, with Brent already at four-year highs, above $81 a barrel
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