Europe Stocks Plunge as Saudi Oil Supply Disruption Looms

Europe's stocks fell sharply after Bloomberg reported that Saudi Aramco warned some European refiners they might receive no crude next month due to a disruption in oil supply. The selloff reflected concerns about rising energy costs and squeezed profit margins across the economy.

The uncertainty stems from the shutdown of Saudi Arabia's East-West pipeline to the Red Sea after drone attacks, which could take up to six weeks to fully restore, according to a source.

Bloomberg reported that Aramco told at least two refiners they won't get next month's scheduled volumes. Refiners who lose contracted deliveries often head to the spot market, where oil is bought for quick delivery, leading to higher feedstock costs or reduced plant operations, both of which pressure earnings.