Oil Prices Surge Following Saudi East-West Pipeline Closure After Drone Attacks
- Saudi East-West pipeline offline after drone attacks.
- Brent crude nears $108, WTI $103 on supply fears.
- Critical Hormuz bypass route; Aramco offers no restart timeline.
Global oil prices experienced a notable surge following reports of drone attacks that led to the closure of Saudi Arabia’s crucial East-West crude pipeline. Brent crude, the international benchmark, climbed to $108.13 per barrel, marking a 3.36% increase, while U.S. West Texas Intermediate (WTI) futures rose 3.23% to $103.28 per barrel. The pipeline, which bypasses the Strait of Hormuz, was reportedly damaged by drone activity, prompting its shutdown. This incident has fueled market concerns regarding crude supply, especially given the lack of disclosure from Riyadh on the extent of the damage or the expected duration of the closure. The geopolitical backdrop, including reports of Houthi forces’ actions in the region, further contributed to market anxieties.
The Saudi East-West pipeline remains offline following last week’s drone attacks. The conduit is a critical route for bypassing the Strait of Hormuz during the US-Iran war, and Saudi Aramco has not yet provided a timeline for its restart, contributing to ongoing market supply concerns.