Saudi Arabia Shuts Down Oil Pipeline After Drone Attack Sends Energy Prices Soaring

Saudi Arabia has temporarily shut down its East-West oil pipeline after it came under aerial attack. The pipeline, which runs for 1,200 kilometers across the Arabian Peninsula, has been a crucial route for global supplies of Middle East oil since the Strait of Hormuz was largely shut due to the US-Iran conflict.

The pipeline has been moving four million to five million barrels per day, accounting for 4.0% to 5.0% of global supply. The attack resulted in some injuries and damage, but the impact on exports is still being assessed by the Saudi Foreign Ministry.

US President Donald Trump suggested that Iran was likely responsible for the strikes, while Crown Prince Mohammed bin Salman phoned Trump to ask for US military help fighting the Houthis. However, Washington has decided not to intervene directly for now but will provide intelligence support instead.