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[Bloomberg]( Oil surges after strike on Saudi facility, Middle East tensions mount, and China growth slows again. Record rise Brent crude futures posted their [biggest-ever jump]( when trading opened in the wake of the weekend’s attack on a Saudi Arabian oil facility that has removed [5% of global supplies](. The estimated 5.7 million barrels a day of lost production is the single biggest disruption on record, surpassing the 1979 hit to Iranian output from the Islamic Revolution as well as the loss of Kuwait and Iraq supplies during the 1990 Gulf War. All eyes are now on how quickly the country can restore supplies, with people familiar saying significant volumes could come back on stream within days, while it could [take weeks to restore full capacity](. President Donald Trump authorized the [release of oil from the U.S. emergency reserve](, declaring on Twitter that there is “plenty of oil.” Blaming Iran While Houthi rebels in Yemen claimed responsibility for the attack, and [threatened further strikes](, U.S. Secretary of State Mike Pompeo laid the blame [squarely on Iran]( saying there’s no evidence the strikes were carried out from Yemen. President Trump said the U.S. is “[locked and loaded](” but added that he’s awaiting word from Saudi Arabia on [how to proceed](. Should Iran be deemed the culprit, the administration will be caught between having a tough response and rushing into a conflict that has the potential to spiral out of control. Sponsored Content by [Barclays]( EdTech: four key investment areas. Education technology is a rapidly evolving, billion-dollar market. Read the latest research from Barclays analysts on what this means for the education sector and what new investment opportunities it’s creating.[Explore the findings.](  Worsening There was more evidence of a [slowdown in China’s economy]( with industrial output rising 4.4% in August, the lowest level in a single month since 2002, while retail sales also came in below expectations. Policy makers are[ ramping up support]( for the flagging economy, while still holding back on using all [tools at their disposal](. With output already weakened by the on-going trade war with the U.S., the last thing China needs right now is [an oil shock](. Markets drop Overnight the MSCI Asia Pacific ex-Japan Index slipped 0.2% with financial firms leading losses in the region as risk appetite waned in the wake of the attack on Saudi Arabia. Japan was closed for a holiday. In Europe, the Stoxx 600 Index was 0.6% lower at 5:45 a.m. Eastern Time, with the oil and gas sub-index soaring 3%, while airline stocks were among the hardest hit by rising oil prices. S&P 500 futures [pointed to a drop at the open](, the 10-year Treasury yield was at 1.829% and gold was higher. Coming up… It is a quiet day on the data front, with September Empire Manufacturing at 8:30 a.m. the only data-point of any note. Turkish President Recep Tayyip Erdogan is meeting Russian President Vladimir Putin and Iran’s President Hassan Rouhani [in Ankara today](, where the weekend attacks are sure to be discussed. British Prime Minister Boris Johnson [is in](Luxembourg to meet with European Commission President Jean-Claude Juncker, with a breakthrough not expected on Brexit negotiations. Workers at General Motors Co. begin their [first strike in 12 years](. We're looking for your feedback to help improve this newsletter. Please [follow this link to our survey](, which will only take a few minutes. What we've been reading This is what's caught our eye over the weekend. - Odd Lots: Why the [dominant U.S. dollar]( refuses to go away. - OxyContin maker Purdue Pharma [files for bankruptcy]( to wipe out 2,000 lawsuits. - StanChart [couldn’t tell regulators]( how some clients got rich. - What’s behind the world’s biggest climate victory? [Capitalism](. - Apple takes on EU’s Vestager in record [$14 billion tax battle](. - Your company should let you [work from anywhere](. - Newly discovered comet is likely [interstellar visitor](. And finally, here’s what Joe's interested in this morning The [attack over the weekend]( on a Saudi Arabian oil facility has brought geopolitical risk to the market's forefront. Reading through analyst research this morning, the dominant concern is not the immediate disruption itself, but rather what it says about vulnerabilities within the oil supply chain, and what happens going forward. "Whether it takes Saudi Arabia five days or a lot longer to get oil back into production," writes Citi's Ed Morse, "there is but one rational takeaway from this weekend’s drone attacks on the Kingdom’s infrastructure: That infrastructure is highly vulnerable to attack, and the market has been persistently mispricing oil." Citi reckons the fair value is $10 a barrel higher than it has been for months. Something to bear in mind is that there's no singular price of oil. While Brent crude priced for delivery next month is currently up over 8%, delivered 12 months from now it's only up 4.5%. Oil for imminent delivery is now trading at its highest premium relative to its future price since 2013, as seen in the chart. In other words, traders expect the attack to have a lasting, though fading impact. As we learn more about what happened, how long the disruption will last, future vulnerabilities and the response from Saudi Arabia (and the U.S.), keep an eye on longer-dated oil futures to get a sense of how deep the impact runs. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. [Learn more](. [FOLLOW US [Facebook Share]]( [Twitter Share]( [SEND TO A FRIEND [Share with a friend]]( You received this message because you are subscribed to Bloomberg's Five Things newsletter. 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