Saudi Oil Pipeline Closure Deals Fresh Blow to Global Energy Market
A critical Saudi oil pipeline damaged in an attack last week will be mostly out of service for several weeks as it undergoes repair, according to two regional officials. The East-West Pipeline, which runs across the country, was struck by the assault and is crucial for transporting crude production from Gulf ports to ports on the Red Sea coast, where it can be loaded onto tankers for export.
The pipeline's closure will further strain Saudi Arabia's efforts to get its oil to market while avoiding the Strait of Hormuz, a strategic choke point at the mouth of the Persian Gulf. Iranian attacks have previously stifled shipping in this area, and the Saudi kingdom relies heavily on this route for its oil exports.
The Houthi rebels' seizure of more islands dominating key Red Sea shipping routes has dealt another blow to Saudi Arabia's oil exports. The region's ongoing conflict is causing significant disruptions to the global energy market.