Commodities
East-West Pipeline Closure Sparks Fears of Energy Shortages and Price Hikes
Saudi Arabia's closure of the East-West pipeline has raised concerns about potential energy shortages and price hikes due to ongoing tensions with Iran.
The pipeline, which spans 1,200 kilometers across Saudi Arabia, carried 2.6-4 million barrels of oil per day, accounting for around 4% of global supply.
Rystad Energy warned that repairs could take three to five weeks, while Brent crude prices have surged above $105 a barrel.
Analysts are concerned about the impact on global energy markets, as the pipeline was crucial in bypassing the Strait of Hormuz during the Iran-Iraq war.