Saudi Oil Lifeline Shut as Red Sea Tensions Escalate

Saudi Arabia has temporarily shut down its East-West pipeline after a drone attack from Iraq, threatening to send global energy prices even higher. The world's largest crude oil exporter said it closed the pipeline as a precaution due to damage and injuries sustained during the attack.

The 1,200-km pipeline, which runs across the Arabian Peninsula, has been a vital route for exporting Middle East oil since the Strait of Hormuz was largely shut down by war. It moves 4 million to 5 million barrels per day, accounting for 4% to 5% of global supply.

U.S. President Donald Trump said Iran is likely responsible for the attack, but no one has claimed responsibility yet. The Saudi Foreign Ministry reported that some injuries and damage were sustained during the attack, with satellite images showing black smoke rising from an area south of Medina.