Houthi Pipeline Attack Triggers Global Oil Price Spike

The Iran-backed Houthi attack on Saudi Arabia's East-West pipeline has disrupted global crude oil supply, causing gas prices to skyrocket. The pipeline, which spans roughly 745 miles and carries between 4-5 million barrels per day (bpd) of crude oil, was shut down after the Houthi rebels launched missile and drone attacks in April and September, resulting in its closure for repairs.

The shutdown is expected to have far-reaching consequences, affecting not only Saudi Arabia's exports but also global supply. According to Andy Lipow of Houston-based Lipow Oil Associates, a prolonged shutdown could drive the national retail price of gasoline to over $4.50 per gallon and the price of diesel fuel to over $6.50 per gallon.

Longanecker, president of the Texas Independent Producers and Royalty Owners Association, added that 'the Houthi capture of Perim Island adds a second threat, to the Bab el-Mandeb Strait, the same route Saudi Arabia would otherwise lean on more heavily right now.'