Oil Prices Soar Above $100 as Saudi Pipeline Shutdown Worsens Middle East Crisis

The price of oil has surged above $100 a barrel due to a temporary shutdown of Saudi Arabia's East-West pipeline, which transports 7 million barrels of oil per day. The pipeline was closed as a precautionary measure after multiple drone attacks on Thursday.

Saudi exports have fallen to around 3 million barrels per day in August, the lowest level since early 2017. This has removed about 3.5 million barrels from regional flows, according to Eurasia Group's Gregory Brew.

Houthi forces have gained control of Perim Island in Bab al-Mandeb, giving them leverage over a second major transit route for global maritime trade. The development comes as Brent crude prices have risen by around 27% over the past two weeks due to escalating US-Iran clashes.