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Smoke is seen following a fire at an Aramco factory in Abqaiq Image Credit: Reuters

Dubai - Dubai - Yemen's Houthi rebels launched drone attacks on the world's largest oil processing facility in Saudi Arabia and a major oil field Saturday, sparking huge fires and halting about half of the supplies from the world's largest exporter of oil.

The pre-dawn drone attack on the Saudi Aramco facilities sparked several fires. The blasts took place at 3:31am and 3:42 am at the two locations, both in the Eastern Province of Saudi Arabia, causing fires that were brought under control by emergency services.

Iraq is denying that its country was the site from where Yemeni-rebel drones were launched to attack Saudi oil installations.

The statement came from Iraqi Prime Minister Adel Abdul-Mahdi's office on Sunday.

It says Iraq would act "decisively" if anyone tried to use its territory to attack other countries.

U.S. officials previously alleged at least one recent drone attack on Saudi Arabia came from Iraq, where Iran backs Shiite militias, something denied by Baghdad.

Those militias in recent weeks have been targeted themselves by mysterious airstrikes, with at least one believed to have been carried out by Israel.

Saturday's drone attacks by Iranian-backed Yemeni rebels have halted about half of Saudi oil supplies after hitting the kingdom's biggest oil processing facility and a major oil field.

They set off huge fires and led to a suspension of "production operations" at the Abqaiq facility and the Khurais field.

President Donald Trump called the Saudi crown prince after the attack, expressing U.S. support for the kingdom's security and stability.

U.S. Secretary of State Mike Pompeo accused Iran of being behind the attacks, ruling out Yemeni involvement and denouncing Tehran for engaging in false diplomacy.

Secretary of State Mike Pompeo tweeting "There is no evidence the attacks came from Yemen." Adding "Iran has now launched an unprecedented attack on the world's energy supply".

He dismissed a claim by Yemeni Houthi rebels that they had attacked the two facilities.

If the rebels were responsible for the attacks, their drones would have had to fly hundreds of miles from Yemen into central Saudi Arabia.

Meanwhile experts are investigating whether the attacks could have been carried out from the north - either by Iran or its Shia allies in Iraq - using cruise missiles rather than drones, the Wall Street Journal reports.