Terrorists are now targeting Saudi Arabia's oil infrastructure.

How bad could things get?

The "terror premium" may account for as much as $8 of the current per-barrel price. That may be because what was once unthinkable now seems possible.

For the terror premium to be justified, one needs to consider three questions:

Is Saudi Arabia really so important?

Would it in fact be easy to pull off a serious attack inside the desert kingdom?

And even if such an attack were to take place, would the oil markets suffer so badly?