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Saudi police exchange fire with militants

Police in Saudi Arabia have exchanged fire with suspected militants in the port city of Jeddah. However, the gunmen escaped.

Saudi Arabia is on high alert after militants killed over 20 people, mostly foreigners, on a weekend-long rampage in the oil city of Khobar last week.

Global oil prices rose sharply after the assault because of fears of further attacks by al-Qaeda-linked militants.