Pipeline Shutdown Sends Oil Prices Soaring Amid Middle East Crisis

The global energy crisis deepened as Saudi Arabia shut down its East-West pipeline following attacks on September 13. The move has disrupted a key route that bypasses the Strait of Hormuz, a critical maritime chokepoint in the region.

Brent crude oil prices rose by 2.6% to $107.29 per barrel at 1:03 p.m. in Singapore, while West Texas Intermediate increased by 2.6% to $102.68 per barrel.

Saudi Arabia's decision to halt the pipeline is seen as a precautionary measure, and there has been no indication of when operations will resume. Analysts are warning that a prolonged shutdown could lead to output cuts, but if flows resume quickly, the impact on supplies may be limited.