Oil prices volatile after Saudi Arabia cuts ties with Iran

Oil prices were volatile Monday after Saudi Arabia severed diplomatic ties with Iran.

After a 3 percent increase in early trading, crude prices dropped to around $37 a barrel.

On Saturday, Saudi Arabia executed Shiite cleric Nimr al-Nimr, further complicating its relationship with Iran.

Al-Nimr was a fervent dissident against the Sunni Muslim Saudi royal family and called for their disposal during the Arab spring uprisings in 2011. After his execution, the Saudi embassy in predominantly Shia Tehran came under attack, according to CNNMoney.

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