Iran's Oil Pipeline Attack Sparks Market Shock Fears Ahead of Midterms

A bold military push by Iran and its proxies to create a choke hold on global oil supplies has caught the Trump administration off guard, threatening a market shock and a steep political backlash in the U.S. midterm elections.

The drone attack on Saudi Arabia's most crucial pipeline, which siphons crude oil from the Persian Gulf to the Red Sea to bypass the Strait of Hormuz, has led to the line's closure, potentially taking 4% of the world's supply off the market.

The Trump administration is in a precarious position less than two months until the November midterms. President Trump's military advisors have warned him that any retaliation could lead to a further depletion of critically low U.S. munition stockpiles and risk escalation that could spiral out of Washington's control.