Houthis Strike Saudi Pipeline, Sending Oil Prices Soaring

Oil prices surged on Monday after Yemen-based militant Houthis struck Saudi Arabia's infrastructure and ships, crippling its East-West Pipeline. The pipeline, which spans over 745 miles, helps move crude production from Persian Gulf ports to the port of Yanbu on the Red Sea, where tankers can export oil.

Saudi officials estimate it will take 3-5 weeks to repair the pipeline, although it may partially function during repairs. The pipeline transports an average of 2.6 million to 4 million barrels per day since late August. Brent crude prices settled at $105.66 per barrel as of Monday afternoon, while West Texas Intermediate (WTI) rose to $101.28.

The attack has caused a significant increase in oil prices, with Rystad Energy stating that the market is pricing in a 'significant loss of supply.' The Houthis have also captured crucial islands and ports in the Red Sea, posing a new threat to oil exports.