Responsibility for the attack was claimed by the Houthi movement, a Yemeni based militant group that has been linked to Iran. The attack could reduce global oil output by 5 percent, causing prices to spike around the world.
US secretary of state Mike Pompeo accused Iran of being behind the attack.
On twitter he commented: “Tehran is behind nearly 100 attacks on Saudi Arabia while Rouhani and Zarif pretend to engage in diplomacy.
“Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world’s energy supply.
“There is no evidence the attacks came from Yemen.”
Hassan Rouhani and Mohammad Javad Zarif are the president and foreign minister of Iran respectively.
According to Saudi Aramco, a state run oil company, the attack is likely to reduce Saudi oil output by around 5.7 million barrels a day.
This represents just over half the total output of Saudi Arabia.
Mr Pompeo added: “We call on all nations to publicly and unequivocally condemn Iran’s attacks.
READ MORE: Britain condemns drone strikes on world’s biggest oil plant
They were China, France, Britain, Russia, Germany and the European Union.
Earlier this year Iran was accused of being behind a series of explosions which hit oil tankers passing through the Gulf of Oman.
Tehran strongly denied the US accusation, which was backed by the UK and Saudi Arabia.
In July the Iranian revolutionary guard seized a British registered oil tanker, The Stena Impero.
This was in retaliation to police and Royal Marines taking an Iranian tanker off Gibraltar.
British authorities claimed the tanker, which was later released, was planning to take oil to the Assad regime in Syria illegally.
Following its release the tanker did travel to Syria, leading to international condemnation.
Democratic senator Chris Murphy responded angrily to Mr Pompeo’s allegations.
Replying on Twitter he said: “The Saudis and Houthis are at war.
“The Saudis attack the Houthis and the Houthis attack back.
“Iran is backing the Houthis and has been a bad actor, but it’s just not as simple as Houthis equals Iran.”