Iranian retaliation is seen as inevitable following the attack on an National Iranian Tanker Co (NITC) suezmax off Saudi Arabia, with war risk insurance costs set to spike.

China, the major Iranian crude buyer, urged restraint after reported missile strikes off Jeddah on Friday left the 160,000-dwt Sabiti (built 1999) damaged and leaking oil into the Red Sea.

NITC officials initially said the strikes likely came from the direction of Saudi Arabia, but they later withdrew this claim.