Brent Crude Surges to $107 Amid Pipeline Closure

The price of Brent oil, a key reference for the European market, surged to $107 per barrel after the temporary closure of Saudi Arabia's East-West pipeline. The pipeline, which transports crude oil from eastern Saudi Arabia to export terminals on the Red Sea coast, was closed due to attacks from Iraq.

The closure has pushed Brent prices to new highs in four months, with a 2.3% increase recorded before European markets opened. The barrel of West Texas Intermediate (WTI), a US reference, also rose by over 2.4%, reaching $102.5 per barrel.

Saudi Arabia has been using the East-West pipeline as an alternative route for oil exports since the closure of the Strait of Hormuz due to tensions between the US and Iran. The pipeline's strategic importance has grown in recent months, allowing Saudi Arabia to divert around 5 million barrels of oil daily that would otherwise exit through Persian Gulf terminals.