Saudi Oil Pipeline Attack Sparks Global Supply Concerns
A critical Saudi oil pipeline that was damaged in an attack will be out of service for several weeks as repairs are made, further threatening global oil supplies.
The East-West Pipeline, which runs 745 miles across Saudi Arabia, carries a significant portion of the country's crude production from Gulf ports to the port of Yanbu on the Red Sea. However, after an attack by drones blamed on Iranian-backed militias in Iraq, authorities were forced to shut down the pipeline.
Repairing the damage could take three to five weeks, with partial operation possible during that time, officials said. The pipeline has been moving an average of 2.6 million to 4 million barrels per day since late August.
The disruption is expected to impact global oil prices, with Brent crude already reaching $109 and continuing to rise due to the increased uncertainty in supplies.