Saudi Oil Export Pipeline Shutdown Threatens Global Supply Disruption
Saudi Arabia's crude oil supply is at risk due to a shutdown of its East-West Pipeline, according to The New York Times. The pipeline, which spans 1,200 kilometers, was temporarily halted after being struck by a drone believed to have been launched from southern Iraq on the 10th.
Analysts at Kpler estimate that if the pipeline remains shut for a month, the global oil market would face a supply shortfall of approximately 120 million barrels, accounting for about 4% of monthly global crude oil supply.
The escalating conflict between Saudi Arabia and Yemen's Houthi rebels is heightening concerns over oil supply disruptions. The Houthi rebels have seized key locations near the Bab al-Mandab Strait and are stepping up pressure on Saudi oil exports by striking critical energy infrastructure.