Oil prices surged nearly a fifth following the strikes, which knocked out more than 5 percent of global oil production. Yemen’s Iran-aligned Houthi group claimed responsibility, but the United States blamed Iran. The Norwegian crown surged as much as 0.7 percent, then settled at 8.964 crowns against the dollar, up 0.3 percent on the day.

It was also 0.3percent ahead versus the euro.

The Canadian dollar rose 0.2percent to C$1.3259, while the Russian rouble was also higher.

The currencies of oil importers such as Turkey and India underperformed, but overall the Forex market reaction was limited.

There was a concern a supply-side shock and growing geopolitical tensions would damage an already fragile global economy, according to MUFG analyst Lee Hardman.

He said: “Downside risks for the global economy would intensify if geopolitical risks in the region continued to escalate, creating a more unfavourable environment for high beta emerging market and high yielding currencies.”

The Japanese yen, a common choice for investors seeking shelter from market uncertainty, rose 0.2 percent to 107.85 yen per dollar.

The US dollar slipped 0.1 percent against a basket of currencies.

But this wasn’t much against the euro at $1.1079.

Saudi Aramco’s trading arm was seeking oil products to be delivered quickly following Saturday’s attacks, three trade sources said on Monday.

Aramco Trading Company was making enquiries for the delivery of diesel, two of the sources said.

A third source told Reuters that the company may have bought two ultra low sulphur diesel cargoes, but this has not yet been confirmed.

David Madden, market analyst at CMC Markets, said: “Usually, higher oil prices are a product of higher demand, but in a scenario like this where supply is squeezed because of an attack, that is the worst of both worlds.

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“China’s economy is clearly fuelling down; things in the US-China trade situation are looking a bit better but not good; Germany is potentially looking toward a recession.

“The last thing the global economy now needs is a surge in oil prices.”

Adding to some weak indicators from China last week, industrial production in the world’s second largest economy grew at its weakest pace in 17 and a half years in August amid rising US trade pressure and softening domestic demand.

The European Central Bank also cut rates deeper into negative territory last week and relaunched bond purchases with no scheduled end-date, laying down a marker that it would continue to do all it could to support euro zone growth.

US President Donald Trump said on Sunday the United States was “locked and loaded” for a potential response to the attack on Saudi Arabia’s oil facilities, after a senior U.S administration official said Iran was to blame. This is despite Iran denying it carried out the attack.

British Foreign Secretary Dominic Raab said the UK stood firmly behind Saudi Arabia.

He added an attack on Saudi Arabia’s oil facilities was serious and outrageous but that the full facts were needed on who was responsible before making a response.

The attack “was a wanton violation of international law”.

He said: “In terms of who is responsible, the picture is not entirely clear,.

“I want to have a very clear picture which we will be having shortly.

“This was a very serious attack on Saudi Arabia and the oil installations and it has implications for global oil markets and supply.

“It’s a very serious, an outrageous act, and we need to have a clear and as united as possible international response to it.”

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