Saudi Oil Disruptions Send Brent Crude Soaring Over 3%

Oil prices surged on Monday after Saudi Arabia's East-West Pipeline was temporarily closed due to drone attacks from Iraq. The pipeline transports around 7 million barrels per day of crude oil, mostly for export via Red Sea ports.

The attack damaged the 1,200 km-long line in eight separate places and sent a plume of black smoke into the air, visible in satellite images. The Saudi Oil Ministry has not indicated when normal operations will resume.

Meanwhile, diplomatic talks between Iran and Arab Gulf states were postponed due to the recent attacks on Saudi oil infrastructure. The talks were intended to create a temporary shipping lane through the Strait of Hormuz, which remains closed by Iranian forces.